Lisa is currently not employed. She places a value of $12 an hour on her time in nonmarket activities. If Lisa is offered a job paying $17 an hour
A. she is indifferent between supplying hours to the labor market and using her time in nonmarket activities.
B. she should supply a positive number of hours in the labor market and allocate no time to nonmarket activities.
C. she should supply a positive number of hours in the labor market and to nonmarket activities.
D. she should supply 0 hours in the labor market and allocate all of her time to nonmarket activities.
Answer: C
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The common feature of the Great Depression and the Global Economic Crisis is
A) that they were preceded by an asset price bubble. B) the active role of the Government before the crises. C) the active role of the FED before the crises. D) the immediate and the aggressive response by both government and the FED.
D. All of these statements are true.
A. an output gap. B. a recession. C. a boom. D. an inflationary gap. AACSB: Reflective Thinking
In the typical AC curve, the downward-sloping part is attributable to
a. spreading fixed costs over larger outputs and increasing returns to the variable inputs. b. declining administrative costs as output increases. c. falling fixed costs. d. rising total product.
In the latter half of the 1990s, the Department of Housing and Urban Development imposed regulations on Fannie Mae and Freddie Mac, requiring them to
a. extend more mortgage loans to households with low and moderate incomes. b. accept only mortgages with at least a 20 percent down payment. c. tighten lending standards and increase their holdings of low-risk, conventional mortgages. d. extend more mortgage loans to households with middle and high incomes.