Road traffic
A natural monopoly exists when
The federal funds rate is closely tied to many interest rates on many types of loans.
Which one is the exception?
a. Auto loan rates
b. Adjustable rate mortgages
c. Adjustable rate home equity loans
d. 30-year Treasury bonds
e. Business loans
Which of the following is the most sensitive to interest rate changes?
a. The demand for non-durable goods.
b. The demand for inexpensive goods.
c. The demand for durable goods.
d. The demand for necessities.
e. The demand for services.
The presence of involuntary part-time workers
a. causes the official unemployment rate to underestimate actual unemployment
b. causes the official unemployment rate to overestimate actual unemployment
c. has no effect on the accuracy of the official unemployment rate
d. is accounted for in the official unemployment rate
e. is insignificant in the U.S. economy and thus is no cause for concern
Suppose you are the president of a large bank. In which situation would you be most
reluctant to loan money to a country?
a. Its nominal debt is $10 trillion.
b. Its nominal debt is 1 percent of nominal GDP.
c. Its nominal deficit is $150 billion.
d. Its real deficit is 100 percent of real GDP.
e. Its real debt is 1 percent of real GDP.
In the long run, monopolistically competitive firms earn zero economic profits because
Suppose that initially the market for DVDs is at point A on demand curve D2in Figure
3-3. If the price of cassette tapes decreased,
For a perfectly competitive firm,
If output decreases, which of the following would occur?
a. Prices of non-labor inputs, input requirements per unit of output and unit costs would
all increase and the economy would move upward along the aggregate supply curve.
b. Prices of non-labor inputs, input requirements per unit of output and unit costs would
all decrease and the economy would move upward along the aggregate supply curve.
c. Prices of non-labor inputs, input requirements per unit of output and unit costs would
all increase and the economy would move downward along the aggregate supply curve.
d. Prices of non-labor inputs, input requirements per unit of output and unit costs would
all decrease and the economy would move downward along the aggregate supply curve.
e. Prices of non-labor inputs would decrease, input requirements per unit of output
would increase and the economy would move upward along the aggregate supply curve.
If the printed circuit board market is perfectly competitive,
If Americans expect the dollar price of the British pound to rise, this expectation will
cause
a. a rightward movement along the U.S. demand curve for pounds
b. a leftward shift of the U.S. demand curve for pounds
c. a rightward shift the U.S. demand curve for pounds
d. a leftward movement along the U.S. demand curve for pounds
e. no change in the U.S. demand curve for pounds
Which of the following will increase the yield on a bond?
Java Joe sells 200 cups of coffee each day in a perfectly competitive market at the
market price of $2.00 per cup. If Java Joe independently decreased its price per cup to
$1.50,
If equilibrium GDP is below potential, then
a. unemployment is unusually low
b. the Fed will lower the money supply
c. the wage rate will fall as workers compete for scarce jobs
d. the aggregate supply curve will shift leftward
e. the wage rate will remain stable as labor productivity increases