In the same city, one job currently pays $6 more per hour than another job. The two
jobs have equivalent training requirements, but labor is not migrating toward the
higher-paying occupation. Both markets are perfectly competitive. Which of the
following conclusions is correct?
All else constant, the quantity of labor supplied is inversely related to the amount of
training required for a job.
A firm’s cost of variable inputs per unit of output is known as
If real consumption spending increases by $400 billion each time real disposable
income rises by $1,000 billion, the marginal propensity to consume is
a. 40
b. 4
c. 0.4
d. 0.04
e. 0.004
A run on a bank occurs when everyone is trying to withdraw their funds simultaneously.
Assuming that baseball and football cards are substitutes. What might explain the shift
in demand curve for baseball cards from D2to D1in Figure 3-6?
What does the demand curve for British pounds tell us?
a. The quantity of pounds people will want to sell at each different exchange rate
b. The quantity of pounds people will want to buy at each level of output
c. The quantity of pounds people will want to buy at each different exchange rate
d. The quantity of pounds people will want to sell in each different time period
e. The quantity of pounds people will want to buy at each different interest rate.
This year, Tom sold his 1998 minivan to Honest John’s Used Car Emporium for $5,000.
Honest John then sold the van to Bob for $7,000. How much would be recorded in GDP
this year from these transactions?
a. $0
b. $2,000
c. $5,000
d. $7,000
e. $12,000
In the early 1990s, some ________________ experienced inflation rates in the triple
digits.
a. of the newly emerging nations of Central Europe and the former Soviet Union
b. East African nations
c. Latin American nations
d. Asian nations
e. West African nations
In the short-run macro model, an increase in the money supply will
a. move the economy to the right along the aggregate expenditure line.
b. move the economy to the left along the aggregate expenditure line.
c. shift the aggregate expenditure line upward.
d. shift the aggregate expenditure line downward.
e. cause the aggregate expenditure line to rotate until it is flat.
The market for General Motors’ bonds
