Which of the following is a positive economic statement?
A) People should not buy imported fruits and vegetables.
B) The government should subsidize solar power for homeowners.
C) The minimum wage law causes unemployment.
D) The number of work visas should not be limited by the government.
If planned aggregate expenditure is below potential GDP and planned aggregate
expenditure equals GDP, then
A) actual inventory investment will be less than planned inventory investment.
B) actual inventory investment will be greater than planned inventory investment.
C) the economy is in a recession.
D) the economy is at full employment.
If the labor supply is unchanged, an increase in the demand for labor will
A) increase the equilibrium wage and decrease the number of workers employed.
B) increase the equilibrium wage and increase the quantity of jobs demanded.
C) decrease the equilibrium wage and increase the number of workers employed.
D) increase the equilibrium wage and increase the number of workers employed.
Which of the following are positive economic statements and which are normative
economic statements? a. An increase in the minimum wage causes unemployment.
b. The government should raise the minimum wage above $7.25 per hour.
c. The prolonged recession has caused the unemployment rate to reach a 30-year high.
d. Interest rates need to be lower for the economy to emerge from the recession.
e. Inflation has decreased since the onset of the recession.
f. Once the recession has ended, interest rates should increase to assure that inflation
does not go up.
Which of the following headlines would be more closely related to what
macroeconomists study than what microeconomists study?
A) Avocado prices rise due to a late frost in California.
B) The United Auto Workers sign a contract raising wages and benefits 7% over the
next 3 years.
C) Real GDP grows by 2.3% in the second quarter.
D) Airlines raise ticket prices in response to rising fuel costs.
According to the ________ Phillips curve, the unemployment rate and the inflation rate
are negatively related.
A) long-run
B) short-run
C) long-run and short-run
D) rational expectations
Figure 2-4
Figure 2-4 shows various points on three different production possibilities frontiers for
a nation. Consider the following events:
a. a decrease in the unemployment rate
b. an increase in a nation’s money supply
c. an influx of immigrant workers Which of the events listed above could cause a
movement from X to Z?
A) a, b and c
B) a and b only
C) a and c only
D) a only
E) c only
We can derive the market demand curve for gold earrings
A) only if the tastes of all gold earring consumers are similar.
B) by adding horizontally the individual demand curves of each gold earring consumer.
C) by adding vertically the quantity demanded of each gold earring consumed at each
price.
D) by adding the prices each gold earring consumer is willing to pay for each quantity.
The following equations represent the demand and supply for bottles of nail polish.
QD = 25 – P
QS = -15 + 3P What is the equilibrium price (P) and quantity (Q – in thousands) of
bottles of nail polish?
A) P = $5; Q = 20 thousand
B) P = $15; Q = 30 thousand
C) P = $20; Q = 5 thousand
D) P = $10; Q = 15 thousand
Marginal revenue for an oligopolist is
A) identical to the demand for the firm’s product.
B) difficult to determine because the firm’s demand curve is typically unknown.
C) downward sloping beneath the firm’s demand curve.
D) horizontal on a price-quantity diagram.