The government spending multiplier is likely to be larger during periods of
A. high output and low unemployment.
B. low output and high unemployment.
C. low output and low unemployment.
D. high output and high unemployment.
Answer: B
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Coal mining is a dangerous and dirty job. Suppose someone developed new machinery that made coal mining safer and cleaner; at the same time, suppose it made coal miners more productive. We would expect that the wages of coal miners would
a. rise. b. fall. c. stay exactly the same. d. rise, fall, or stay the same.
An increase in the price of gasoline will
A. Shift the automobile demand curve to the left. B. Shift the gasoline demand curve to the right. C. Shift the automobile supply curve to the left. D. Shift the gasoline supply curve to the right.
People who buy used homes often insist on having a "home inspection" before they finalize the purchase. If the house fails the inspection the buyer has the right to refuse to buy the house unless the seller fixes whatever problems are found. Does this help or hurt the seller?
What will be an ideal response?
Suppose that the price of a bag of jellybeans is $6, and the price of a bottle of cola is $2. The relative price of cola is
A) 3 bags of jellybeans per bottle of cola. B) 2 bags of jellybeans per bottle of cola. C) 1/3 bag of jellybeans per bottle of cola. D) $2.