The return to owners for innovation and risk taking is a firm’s
Price ceilings are primarily targeted to help __________, while price floors generally
benefit __________.
Suppose that a consumer used to be at point R on budget line AA’ in Figure 5-5, and is
now at point S on line BB’. Which of the following is true if the consumer enjoys both
goods?
If a group of professionals successfully lobby the government to require workers in
their profession to have a license, the most likely result will be a(n)
If the dollar-pound exchange rate is $2.00 per pound, then a shirt priced at 25 pounds
will cost an American
a. $25
b. $50
c. $26
d. $27
e. an amount that cannot be calculated without additional information.
The self-correcting mechanism is the reason that the economy will behave as the
classical model predicts in the long run.
Economics is the study of
One problem with changing the required reserve ratio is that
a. the policy must be kept secret from the public in order to have any effect
b. the results are unpredictable
c. the changes are usually not effective
d. banks will often ignore the changes
e. it takes too much time for these changes to affect the economy
The short run for Barbara’s Bakery is defined as
As a society produces more and more of one good, it must give up increasing amounts
of the alternative good. This demonstrates the
If the unemployment rate has reached an all-time high, the production of output is
probably
a. high
b. low
c. stable
d. fluctuating
e. equal to its potential
In a perfectly competitive market,
If 130 million individuals are employed and 6 million are unemployed, what is the
unemployment rate?
a. 4.8 percent
b. 3.0 percent
c. 4.4 percent
d. 4.6 percent
e. 9.6 percent
Figure 4-1 shows the supply and demand for socks. If a price ceiling of $10 per pair is
imposed by the government, the number of pairs actually purchased will be