The total cost to a firm of producing zero units of output is
Human capital is defined as
a. the skills and knowledge possessed by workers
b. the tools used by labor
c. equipment and machinery used to train workers
d. buildings purchased by households rather than by businesses
e. equipment and machinery used to aid household production and increase available
leisure time
If the numerical value of the price elasticity of demand is 3, then a one-percent change
in price will cause a(n)
A perfectly elastic supply curve
Which of the following groups of workers would be considered part of the short-run
supply of court reporters in the Chicago area-labor market?
When a recession begins and ends is determined by a committee within the
a. Office of Management and Budget
b. Bureau of Economic Analysis
c. Council of Economic Advisors
d. National Bureau of Economic Research
e. Bureau of Labor Statistics
Monopoly is a prime example of a market failure that leaves potential Pareto
improvements unexploited. This is demonstrated by the fact that
The demand deposit multiplier is likely to be smaller than 1/RRR if
a. the public will not want to change its holdings of currency
b. the public holds no currency
c. banks want to hold excess reserves
d. want to hold no excess reserves
e. banks increase the number of loans they offer to make a larger profit
In the short-run macro model, what type of unemployment is caused by insufficient
spending?
a. Cyclical
b. Structural
c. Frictional
d. Seasonal
e. All types of unemployment are caused by insufficient spending
The average percentage markup in the economy is
a. relatively stable, but the price level may not be
b. relatively stable, causing the price level to also be relatively stable
c. relatively unstable, despite which the price level remains relatively stable
d. relatively unstable, causing the price level to also be relatively unstable
e. determined by the unit costs of production
The Federal Reserve tends to increase the money supply each year.
One of the most serious effects of a banking panic is that
a. banks will not earn as much profit
b. banks will no longer be trusted by the public
c. people will not place their excess money in banking accounts
d. people may lose any accrued interest on their accounts
e. large withdrawals of cash lead to a severe decrease in reserves and ultimately in the
money supply
Use the following to determine the marginal propensity to consume (MPC).
a. 0.85
b. 1.33
c. 0.92
d. 0.75
e. 0.80
An increase in the supply of labor will, everything else equal,
a. increase the full-employment level of output
b. decrease the full-employment level of output
c. move the economy from a recession toward full employment
d. reduce total employment
e. have no impact on total employment