If the economy has substantial unemployment, then the inflationary costs of expansionary policy are likely to be:
a. low, and the unemployment gains minimal.
b. low, and the unemployment gains large
c. high, and the unemployment gains minimal.
d. high, and the unemployment gains large.
b
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Which of the following is an example of an open-access resource?
a. a city subway system b. a college education c. an elementary school education d. whales in the ocean e. pandas in the zoo
If the United States were to adopt a policy of free trade with European countries and Japan, this policy would:
a. help the United States and hurt the other countries because the United States has a larger population. b. help all of the countries involved because every country would have a comparative advantage in the production of some goods. c. hurt all of the countries involved because all the countries are capable of producing anything that could be produced in one of the other countries. d. help the United States and hurt the other countries because the United States has more natural resources than the other countries.
The level of real GDP is a good measure of economic prosperity, and the growth of real GDP is a good measure of __________
Fill in the blank(s) with correct word
Which of the following is NOT an assumption of the classical model?
A. People are motivated by self-interest. B. Money illusion exists. C. Wages and prices are flexible. D. Pure competition exists.