The demand for labor depends upon each of the following, except one. Which is the
exception?
When a bank needs to increase its reserves, it will
a. call in all its loans
b. stop paying interest on its saving accounts
c. borrow money from the government
d. call in a loan or reduce new lending
e. increase the number of loans it makes
Which of the following mathematical statements is correct
a. Total Output=Productivity x Average Hours x the employment-population ratio x
Population
b. Total Output=Productivity / Average Hours x the employment-population ratio /
Population
c. Total Output=Productivity + Average Hours + the employment-population ratio +
Population
d. Total Output=(Productivity x Average Hours) / (the employment-population ratio x
Population)
e. Total Output=Productivity x Average Hours x the employment-population ratio
In the short-run macro model, if GDP = $5 trillion and aggregate expenditure = $4.6
trillion, we would expect
a. prices to fall until the additional $0.4 trillion of output was sold
b. prices to rise
c. output to rise because businesses anticipate that buyers will spend more in the future
to compensate for weak spending in this period
d. inventories to rise by $0.4 trillion
e. inventories to shrink by $0.4 trillion
Using anti-trust law to break up a monopoly
Which of the following is the most volatile component of private investment?
a. Plant and equipment purchases
b. New home construction
c. Purchases of services
d. Changes in business inventories
e. Consumption of nondurables
If you lend money at a nominal interest rate of 9 percent and the inflation rate is 1
percent, what real interest rate will you earn?
a. 3 percent
b. 4 percent
c. 8 percent
d. 12 percent
e. 15 percent
To be considered employed, a person must have
a. worked at least 1 hour during the previous week
b. searched at least 1 hour for a job during the previous week
c. worked at least 5 hours during the current week
d. worked at least 15 minutes during the previous month
e. earned at least the minimum wage for five or more hours of work per week
Economic efficiency requires that no more Pareto improvements are still possible.
According to the Coase theorem,
Personal consumption spending now comprises approximately what fraction of GDP?
a. One-third
b. One-sixth
c. Three-quarters
d. One-quarter
e. One-half
A patent
Many economists argue that the best way to correct employer discrimination is to