The Dow Jones Industrial Average:
A. gives greater weight to shares with higher prices.
B. gives equal weight to a change in the price of the stock of any company in the index.
C. is a value-weighted index.
D. reflects that a 10% increase in a share of stock selling for $30 will have the same effect on the index as a 10% increase in the price of a stock selling for $60.
Answer: A
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Referring to Figure 19.2, the effect of an increase in U.S. interest rates is represented by a movement from point
A) a to b. B) c to b. C) a to d. D) d to c.
Keynesian policies are ineffective at combating stagflation because stagflation is caused by: a. budget surpluses
b. decreases in aggregate supply. c. trade deficits. d. decreases in aggregate demand. e. budget deficits.
Suppose that bartenders and waiters have no unions. Now suppose that bartenders form a union. What does this do the labor supply and wages of waiters?
a. Both labor supply and wages increase. b. Labor supply increases, and wages decrease. c. Labor supply decreases, and wages increase. d. Both labor supply and wages decrease.
What is the percentage of income received by the middle three quintiles on line Z?
