Which of the following occurs during an expansion?
a. Output rises, employment rises and unemployment falls.
b. Output falls, employment rises and unemployment falls.
c. Output rises, employment falls and unemployment falls.
d. Output rises, employment rises and unemployment rises.
e. Output rises, employment rises and tax revenues fall.
A
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Which of the following is NOT a reason that free trade stimulates economic growth?
A) Free trade encourages a more rapid spread of technology. B) Industries have larger markets. C) The importation of technically advanced products enables the country to imitate the technology. D) Free trade keeps domestic prices up, enabling firms to make more profits that can be spent on research and development.
Federal support for road building into publicly owned commercial forests has caused
a. an increase in the supply of timber. b. an increase in the demand for timber. c. higher timber prices. d. a shortage of timber. e. All of the above.
In foreign exchange markets, the demand for dollars is determined: a. solely by the level of U.S. merchandise exports
b. solely by the level of U.S. merchandise imports. c. by the level of U.S. imports and the demand for foreign assets by U.S. citizens and the U.S. government. d. by the level of U.S. exports and the demand for U.S. assets by foreigners.
The free rider problem causes less than optimal production of a public good.
A. True B. False C. Uncertain