Moving along the production possibilities frontier itself illustrates
A) the existence of tradeoffs.
B) the existence of unemployment of some factors of production.
C) the benefits of free lunches.
D) how free lunches can be exploited through trade.
E) how tradeoffs need not occur if the economy is efficient.
A
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What is the implication of the demographic transition for the labor force? Dependency ratio?
What will be an ideal response?
If the expected path of one-year interest rates over the next five years is 4 percent, 5 percent, 7 percent, 8 percent, and 6 percent, then the expectations theory predicts that today's interest rate on the five-year bond is
A) 4 percent. B) 5 percent. C) 6 percent. D) 7 percent.
A backward-bending labor supply curve implies that
A) the substitution effect dominates the income effect at higher wage rates but not at lower wage rates. B) the substitution effect dominates the income effect at lower wage rates but not at higher wage rates. C) leisure is an inferior good. D) workers are irrational.
Answer the following statement(s) true (T) or false (F)
1. The price of a bond can be expressed as its Face Value minus its Discount. 2. A dividend is the amount of money a shareholder is paid (per share) at years end. 3. A representative agent is someone that acts as a proxy for an investor during corporate votes. 4. If marginal costs are significant, then the price of an exhaustible resource grows at the rate of interest.