Which of the following statements about economic fluctuations istrue ?
A. A variety of spending, income, and output measures can be used to measure economic fluctuations because most macroeconomic quantities tend to fluctuate together.
B. Economic fluctuations have been termed the "business cycle" because the movements in output are regular and predictable.
C. A depression is a mild recession.
D. A recession is when output rises above the natural rate of output.
E. None of these answers are true.
Answer: A. A variety of spending, income, and output measures can be used to measure economic fluctuations because most macroeconomic quantities tend to fluctuate together.
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John raises bees to pollinate his orchard. A couple of bees which escaped ended up pollinating his neighbor's orchard, so
A) John's neighbor has received an internal cost of John's bee-keeping. B) John's neighbor has received an external cost of John's bee-keeping. C) John's neighbor has received an external benefit of John's bee-keeping. D) None of the above is correct.
Which of the following coordinates and plans foreign aid programs and expenditures in the United Sates?
a. The Federal Reserve Board b. The Federal Open Market Committee c. The Agency for International Development d. The Bureau of Economic Analysis e. The U.S.Department of the Treasury
The Balance of Payments is:
(a) The difference between household spending and income. (b) The difference between government spending and income. (c) A measure of the economic transactions between Irish residents and the rest of the world. (d) The difference between inflation and unemployment.
Suppose a firm is in a range of production where it is experiencing economies of scale. Knowing this, we can predict that:
A. the long-run average total cost curve is upsloping. B. a 10 percent increase in all inputs will increase output by less than 10 percent. C. a 10 percent increase in all inputs will increase output by more than 10 percent. D. the firm is encountering problems of managerial bureaucracy because of its size.