A sometimes short, sometimes extended period of declining output and living standards is referred to as a recession.
True
You might also like to view...
Which of the following utility functions has the same MRS as U(q1,q2 ) = q1 q2?
A) q11/2 q21/2 B) q1 + q2 C) q11/2 + q21/2 D) (q11/2 + q11/2 )2
Suppose Japan exports televisions to the United States and imports sugar from Argentina. This situation suggests
a. Japan has a comparative advantage relative to the United States in producing televisions, and Argentina has a comparative advantage relative to Japan in producing sugar. b. Japan has a comparative advantage relative to the United States in producing sugar, and Argentina has a comparative advantage relative to Japan in producing televisions. c. Japan has an absolute advantage relative to the United States in producing televisions, and Argentina has an absolute advantage relative to Japan in producing sugar. d. Japan has an absolute advantage relative to Argentina in producing sugar, and the United States has an absolute advantage relative to Japan in producing televisions.
The external cost of congestion arises because:
A. travel time increases when there are more cars on the road. B. young drivers take more driving risks than do older drivers. C. crowded highways deteriorate more quickly than do less-traveled highways. D. toll booths slow traffic.
If an investor holds two risky assets with a perfect negative correlation, then risk
A) falls to zero. B) is increased. C) is unaffected. D) is reduced by 50 percent.