Does a subsidy to buyers affect the supply curve?
A. No, the quantity supplied will increase, but the supply curve does not move.
B. No, the quantity supplied will decrease, but the supply curve does not move.
C. Yes, it shifts supply up by the amount of the subsidy.
D. Yes, it shifts supply to the right by the amount of the subsidy.
Answer: A
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A compensating wage differential is a wage premium paid in order to:
A) recognize a more efficient employee. B) attract workers who have a family to support. C) improve the goodwill of a firm hiring workers. D) attract workers to otherwise undesirable occupations.
In the short run, tax cuts that are intended to increase aggregate supply have
a. almost no effect on aggregate demand, and a small effect on aggregate supply. b. about an equal effect on both aggregate demand and aggregate supply. c. a much greater effect on aggregate demand than on aggregate supply. d. almost no effect on aggregate supply, and a negative effect on aggregate demand.
What method is often used when both parties want to eliminate information asymmetry?
A. Statistical discrimination. B. Signaling. C. Moral hazard. D. Screening.
The "core rate" of inflation
A. removes food and energy from the price index. B. is a price index associated with the important things people buy. C. adds in food and energy to the price index. D. only includes the price of food and energy in the price index.