Cyclical unemployment is caused by
A) technological change.
B) fluctuations in the business cycle.
C) a dynamic economy in which people want to switch jobs sometimes.
D) predictable shifts in production associated with different seasons.
Ques. 2Normative economics is
A) analysis involving value judgments about economic policies; or a statement of what ought to be.
B) analysis that is strictly limited to making either purely descriptive statements or scientific predictions.
C) analysis of the behavior of the economy as a whole.
D) decision making undertaken by households and business firms.
Ques. 3In the 1970s, the government placed price ceilings on gasoline prices. A shortage of gasoline occurred, and long lines formed at the pumps. Some gas stations required that in addition to paying the price on the pump you had to buy a blank will.
The action of having to purchase the will in order to purchase gas is known as A) a surplus.
B) a price support.
C) the price system.
D) a black market.
Ques. 4The relationship of dead capital to inefficient production is
A) without clear ownership it is not possible to sell or transfer a resource so that it can be used efficiently.
B) that outdated equipment will lead to inefficient production.
C) nonexistent since the capital is already dead.
D) that when the dead capital is replaced by more technologically advanced capital, economic growth occurs.
Ques. 5What is meant by the demand for money?
What will be an ideal response?
Ques. 6Sales taxes are routinely collected by
A) the merchants selling the good or services.
B) the Internal Revenue Service.
C) the Department of Commerce.
D) the Federal Trade Commission.
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