Statistical discrimination
In the Full Employment and Balanced Growth Act of 1978, Congress set a target rate of
unemployment. The nation achieves this target rate
a. in most years
b. at least once a year
c. only rarely
d. in election years
e. at least once every five years
Technological advances that increase the skill requirements for many jobs will tend to
The marginal social cost (
Increases in __________ have been responsible for most of the economic growth in the
U.S. over the last 50 years.
a. imports.
b. productivity.
c. average hours.
d. the employment-to-population ratio.
e. tax revenues.
When firms become so large that they have to add additional layers of management and
decision making becomes more cumbersome,
What is the relationship between total taxes and net taxes?
a. total taxes = net taxes / transfer payments
b. net taxes = total taxes + local taxes
c. net taxes = transfer payments / total taxes
d. total taxes = net taxes – transfer payments
e. total taxes = net taxes + transfer payments
According to the Taylor rule,
a. the Fed would have the discretion to choose an appropriate inflation rate
b. the Fed would announce targets for the inflation rate and real GDP
c. the Fed would allow the inflation rate to increase by about 0.5 percent per year
d. the Fed would allow the price level to increase by about 0.5 percent per year
e. Congress would set an annual inflation rate target
Suppose that a market is initially in equilibrium. Then the government imposes a price
floor above the equilibrium price. Which of the following will occur in the absence of a
black market?
Figure 5-4 shows the demand schedule for hockey pucks. What is the price elasticity of
demand when the price changes from $4 per puck to $5 per puck?
The classical model is a poor predictor of short-run economic fluctuations in part
because it assumes that
a. all workers wish to work
b. government will prevent these fluctuations
c. the labor market always clears
d. the long run is just a series of short-run periods
e. labor demand curve is stable
If people regard economic fluctuations as temporary,
a. spending will be less sensitive to changes in income, and the multiplier will be larger.
b. spending will be less sensitive to changes in income, and the multiplier will be
smaller.
c. they will be pessimistic about the future.
d. spending will be more sensitive to changes in income.
e. spending will be independent of changes in income.