Media reports often suggest that the increasing public debt is a burden on future generations. What they mean is that
A. it reduces the current level of investment.
B. it reduces both nominal and real interest rates.
C. it makes predicting future unemployment levels unpredictable.
D. it causes deflation.
Answer: A
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Use the following figure showing the domestic demand and supply curves for product B in a hypothetical economy to answer the next question.
After trade, at a world price of Pw, total economic surplus equals area(s)
A. A + B + C + D + E + F. B. A + B + C + E + F + J + I. C. D. D. A + B + C + D.
Which of the following does NOT affect a worker's marginal productivity?
A. training B. talent C. inheritance of money D. education
Assume government policy increases the demand for corn
A) The consumer surplus of corn buyers will increase. B) The producer surplus of corn growers will decrease. C) The producer surplus of corn growers will increase. D) The producer surplus of corn growers will not change.
Refer to Figure 21-26. Rhonda experiences an increase in her hourly wage. Her optimal choice point moves from A to B. For Rhonda,
a. Leisure is a normal good. b. Her labor supply curve is backward bending. c. Both a and c are correct. d. Her labor supply curve is upward sloping.