Horizontal equity is extremely compatible with the benefit principle
a. True b. False
b
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The price elasticity of demand will be larger in absolute value if
a. expenditure on the good represents a smaller proportion of the consumer's total expenditure b. we define the good more broadly c. we define the good more narrowly d. the number of substitutes is smaller e. the number of consumers is larger
A household member's decision about how much labor to supply is most closely linked to
a. the supply of factors of production other than labor. b. technological change. c. the tradeoff between leisure and work. d. immigration trends.
In an environment of tournament pay, it is quite likely that marginally more productive employees will receive
a. more than their marginal revenue product, as do less productive employees. b. less than their marginal revenue product, while less productive employees receive more than theirs. c. more than their marginal revenue product, while less productive employees receive less than theirs. d. less than their marginal revenue product, as do less productive employees.
Assume a fixed demand for money curve and the Fed increases the money supply. The result is a temporary:
A. excess quantity of money demanded. B. excess quantity of money supplied. C. new equilibrium interest rate. D. decrease in the demand for loans.