What economic impact would the closing of a nearby military base have on a town? Would people and businesses that did not directly deal with the military personnel be affected?
What will be an ideal response?
Through the multiplier effect, the closing of the military base would have a large effect on the town. The businesses that sold directly to the military personnel would lose sales, resulting in declining profits and layoffs. With less income, these business owners and workers would buy less goods and services from other businesses in town, which would drop the income of the owners and workers in the other businesses. With less income, they would also decrease their spending and the multiplier effect would spread through the town.
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Suppose that with a strictly enforced rent ceiling on rooms of $550 a month, a black market develops. How high could the black market rent be and would the on-campus housing market be fair? Explain your answer
What will be an ideal response?
Natural rate of unemployment is considered to be the sum of:
a. seasonal and structural rates of unemployment. b. frictional and structural rates of unemployment. c. seasonal and cyclical rates of unemployment. d. frictional and cyclical rates of unemployment.
If we compare income percentages of total income of the lowest quintile in 1968 with 2008, we would find that it was
A. rising. B. staying about the same. C. falling.
A demand curve with continuously changing slope over all quantity values will always have a constant price elasticity of demand.
Answer the following statement true (T) or false (F)