Advocates of discretionary policy make which of the following criticisms of the economy’s “self-correcting” mechanism?
A. It is slow.
B. It is not very reliable.
C. It works only when supplemented by automatic stabilizers.
D. All of these responses are correct.
E. Options a and b only are correct.
Answer: E
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Tickets to the Michigan-Notre Dame football game are usually sold out in advance of game day. This suggests that
a. the price of the tickets must be very high or else people would not consider them valuable
b. the price is set below the equilibrium level
c. the football stadium is relatively small
d. everyone who attends the game will enjoy it
e. the price is determined primarily by the fixed supply of tickets
Using the table above, the Current Population Survey classifies the group of individuals obtained by adding groups 5 and 6 as
A) the labor force. B) employed. C) discouraged workers. D) unemployed. E) the working age population.
Refer to Figure 4.4. At an interest rate of 7%,
A) Foreign borrowers have an incentive to offer lenders in the United States an interest rate greater than 7%. B) Foreign lenders have an incentive to offer borrowers in the United States an interest rate less than 7%. C) U.S. lenders have an incentive to offer borrowers in the rest of the world an interest rate of 7%. D) U.S. borrowers have an incentive to offer U.S. lenders an interest rate greater than 7%.
Outsourcing refers to the process in which: a. a firm purchases service from another firm in another country. b. a firm hires laborers from a foreign market. c. the government of a country works toward providing social security and other rights to migrant workers. d. a firm purchases service from another firm
e. workers of a particular country seek employment in a firm of a foreign country.