In the short run, those who are hurt by the minimum wage are
Which of the following is a reason why a particular job may pay a higher-than-average
wage rate?
An appreciating currency is always a sign of economic health.
The supply of labor to a particular job will be greater the
People’s decision about whether to hold money or bonds can be influenced by the
interest rate.
If a non-discriminating monopolist decides to lower its price to sell one more unit of its
product, then
Which of the following is an advantage of open market operations over other Federal
Reserve policy tools?
a. Use of the other tools must be approved by the President.
b. Use of the other tools must be approved by Congress.
c. Open market operations are more precise.
d. Open market operations do not change interest rates.
e. The U.S. Treasury and the Fed work together to undertake open market operations.
Which of the following changes would increase the present value of a future payment?
Which of the following would be classified as private investment?
a. An individual’s purchase of a used car
b. A family’s purchase of groceries
c. An individual’s purchase of a General Electric bond
d. A family’s purchase of a newly built home
e. A family’s purchase of a new car
The cash that is counted as part of M1 does not include vault cash.
Which of the following could cause the production function to shift upward?
a. A decrease in the capital stock
b. An increase in the capital stock
c. An increase in population
d. A decrease in population
e. An increase in transfer payments
In the short run, a monopolistically competitive firm
GDP measures the output produced within a nation’s borders.
Assume that U.S. agricultural land is used either to raise cattle for beef or to grow
wheat. Figure 2-2 represents the production possibility frontier for beef and wheat.
What is assumed constant as the economy moves from point F to point G?
Figure 2-2
If men, on average, earn 20 percent more than women in a particular occupation,
Which of the following would be considered a resource cost of inflation?
a. A cost of living adjustment
b. Loss of purchasing power
c. Additional trips to the bank
d. Adjusting nominal interest rate to get real rates
e. Creeping inflation
A natural monopoly is producing an output level of 1,000 units per day. If the monopoly
is broken up into 5 firms, then average total cost for each of the 5 firms
Stocks and bonds are similar in the sense that
Which of the following are examples of leakages?
a. government purchases, net taxes and imports
b. government purchases, exports and investment spending
c. net taxes, household saving and imports
d. net taxes, investment spending and exports
e. net exports, investment spending and net taxes