In 2015, the U.S. auto industry experienced rising sales. The automobile industry was experiencing ...
In 2015, the U.S. auto industry experienced rising sales. The automobile industry was experiencing the effects of A) inflation. B) the underground economy. C) the business cycle. D) depreciation.
If you have trouble finding a job because of a slowdown in the overall economy, we would say that you are
If you have trouble finding a job because of a slowdown in the overall economy, we would say that you are A) frictionally unemployed. B) structurally unemployed. C) cyclically unemployed. D) seasonally unemployed.
Suppose that the labor movement has a revival in the United States and the majority of workers join ...
Suppose that the labor movement has a revival in the United States and the majority of workers join labor unions. As a result we would expect A) the labor force participation rate to fall. B) the unemployment rate to fall. C) the unemployment rate t
Under the Soviet system of communism, A) managerial pay was determined by the extent to which managers could lower the per-unit costs of production. B) technological progress was slow because managers had little incentive to develop new technologies.
A small economy increased its capital per hour worked (K/L) from $40,000 to $50,000. As a result, ...
A small economy increased its capital per hour worked (K/L) from $40,000 to $50,000. As a result, real GDP per worker (Y/L) grew from $20,000 to $25,000. If the economy increases its capital per hour worked by another $10,000 to $60,000, but there is
If the MPC is 0.5, then a $10 million increase in disposable income will increase consumption by
If the MPC is 0.5, then a $10 million increase in disposable income will increase consumption by A) $2 million. B) $5 million. C) $15 million D) $50 million.
The more excess reserves banks choose to keep, A) the larger the deposit multiplier. B) the smaller the deposit multiplier. C) the higher the required reserve ratio. D) the lower the required reserve ratio.
If the balance of the current account in the United States is -$900 billion, which of the following ...
If the balance of the current account in the United States is -$900 billion, which of the following is most likely to be true? A) The balance on the financial account is positive. B) The trade balance is positive. C) Net foreign investment is positiv
Which of the following is most important in explaining exchange rate fluctuations in the short run?
Which of the following is most important in explaining exchange rate fluctuations in the short run? A) relative price levels across countries B) preferences for domestic and foreign goods C) interest rates D) relative rates of productivity growth acA
If the purchasing power of a dollar is greater than the purchasing power of the yen, purchasing ...
If the purchasing power of a dollar is greater than the purchasing power of the yen, purchasing power parity would predict that A) in the short run, exchange rates will move to equalize the purchasing power of the dollar and the yen. B) in the long r
If the GDP deflator in the United States is 114, and the GDP deflator in Ukraine is 142, which of ...
If the GDP deflator in the United States is 114, and the GDP deflator in Ukraine is 142, which of the following exchange rates would the theory of purchasing power parity predict in the long run? (The Ukrainian currency is the hryvnia.) A) 0.80 hryv
Although the pegged exchange rate between the yuan and the dollar has undervalued the yuan, China ...
Although the pegged exchange rate between the yuan and the dollar has undervalued the yuan, China had been reluctant to abandon the peg for fear that abandoning the peg would A) increase exports and increase the current account deficit. B) reduce cap
A persistent surplus of pounds at a given fixed exchange rate (in dollars per pound) is evidence ...
A persistent surplus of pounds at a given fixed exchange rate (in dollars per pound) is evidence that the pound is ________ versus the dollar. This surplus can be reduced or eliminated through a ________ of the pound. A) undervalued; devaluation B)
When the marginal revenue curve cuts the horizontal axis,
When the marginal revenue curve cuts the horizontal axis, A) demand is relatively elastic. B) demand is relatively inelastic. C) demand is perfectly elastic. D) demand is unitary elastic.
Suppose 10 citizens each derive marginal benefit from traffic lights according to the function MB = ...
Suppose 10 citizens each derive marginal benefit from traffic lights according to the function MB = 10 - Q. If traffic lights cost $10 each to produce, what is the efficient quantity of traffic lights? A) 9 traffic lights B) 12 traffic lights C) 8 t
Organizations which have branches in various locations can function efficiently as U-form ...
Organizations which have branches in various locations can function efficiently as U-form organizations. Indicate whether the statement is true or false
QUESTION 2
Free riding is a problem A) if an individual's cont
The total tariff revenue to the government of an imported good is found by adding the tariff to the ...
The total tariff revenue to the government of an imported good is found by adding the tariff to the quantity of the good imported. a. True b. False Indicate whether the statement is true or false
For an inferior good: a. the income elasticity is positive. b. the income elasticity if negative. c. the income elasticity is zero. d. the income elasticity is unity.
Dividend yield is: a. the annual dividend payment per share. b. the annual dividend per share divided by the price of each share. c. the current stock price divided by the dividend per share. d. the year-on-year change in
Which of the following people would be classified as fictionally unemployed?
Which of the following people would be classified as fictionally unemployed? a. Computer programmers who lost their jobs because of a recession. b. Construction workers who are on temporary layoff. c. Elementary school teachers w
Sometimes the government deals with externalities by creating laws to regulate behavior instead of ...
Sometimes the government deals with externalities by creating laws to regulate behavior instead of using taxes to correct the market failure. So, requiring auto manufacturers to install a device called a catalytic converter which removes some toxins
Countries with reliable phone service have difficulty not only communicating, but also reaping the ...
Countries with reliable phone service have difficulty not only communicating, but also reaping the benefits of other technology advances, such as the Internet. a. True b. False
A successful advertising campaign would likely a. increase price elasticity of demand by stressing the uniqueness of the product b. reduce price elasticity of demand by stressing the uniqueness of the product c. reduce price elas
Suppose employees pay a bond of 1,000 to an employer. The gain from shirking is 400. Monitoring ...
Suppose employees pay a bond of 1,000 to an employer. The gain from shirking is 400. Monitoring devices have been installed so that there is a 50 chance of being caught if you are shirking. The company is considering the installation of additional mo
Which of the following effects will not increase (i.e., shift to the right) the aggregate supply ...
Which of the following effects will not increase (i.e., shift to the right) the aggregate supply curve? a. An increase in the average national price level. b. A decrease in the price of fuel. c. An appreciation of the domestic cu
Cost-push inflation occurs when a nation's: a. Aggregate supply rises, causing rising prices and rising unemployment. b. Aggregate supply rises, causing rising prices and falling unemployment. c. Aggregate demand rises, which lea
If the value of the domestic currency depreciates:
If the value of the domestic currency depreciates: a. Aggregate demand rises and aggregate supply falls. b. Aggregate demand rises, but aggregate supply does not change. c. Aggregate demand falls and aggregate supply rises.
Assume that foreign capital flows from a nation increase due to political uncertainly and increased ...
Assume that foreign capital flows from a nation increase due to political uncertainly and increased risk. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the quantity of real loanable fu
Virtual currency unit 2 (VCU2) is different from VCU1 because:
Virtual currency unit 2 (VCU2) is different from VCU1 because: a. VCU1 cannot be spent in the real world; VCU2 can be spent in the real world. b. VCU1 can only be purchased with real-word currencies. VCU2 can be purchased with real-worl
The reserves of financial institutions: a. Are the largest liability in a financial institution's balance sheet. b. Are assets that financial institutions try to maximize. c. Are assets that financial institution's try to keep at
Your text mentions several ways that international trade flows are qualitatively different than they ...
Your text mentions several ways that international trade flows are qualitatively different than they were a century ago. Which of the following is NOT one of those ways?
A) Firms' investment spending on capital goods is more important
A) the exchange rate between any two currencies is equal to the ratio of their price indexes. B) the same good sells for the same price internationally. C) the percentage change in the exchan
With tied aid (a) MNC investment depends on tax concessions. (b) aid recipients must use the aid ...
With tied aid
(a) MNC investment depends on tax concessions. (b) aid recipients must use the aid to purchase goods and services from the donor. (c) aid recipients must follow World Bank/IMF conditionality. (d) all
Your Opinion
