"Countries are poor because they cannot afford to save and invest" is called the:
A. vicious circle of poverty.
B. savings-investment trap.
C. LDC trap.
D. cycle of insufficient credit.
Answer: A
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In the above table, what is the marginal factor cost of the 4th worker?
A) $16 B) $30 C) $64 D) $22
If Nate takes out a $5,000 loan for one year at 10 percent annual interest, the principal is:
A. $5,000. B. $5,500. C. $500. D. $1000.
Keynesian policy suggests that if inflationary rises in the price level are a concern, the response would be contractionary fiscal policy, using tax increases or government spending cuts to shift AD to the left. What would the result be in this scenario?
a. The result would be downward pressure on the price level, very little reduction in output but a large rise in unemployment. b. The result would be downward pressure on the price level, but very little reduction in output or very little rise in unemployment. c. The result would be downward pressure on the price level, a large reduction in output but very little rise in unemployment. d. The result would be downward pressure on the price level, but a large reduction in output and a large rise in unemployment.
Statistical discrimination
a. arises from employer prejudice b. arises from consumer prejudice c. does not involve prejudice by employers or consumers d. is illegal in the United States e. tends to reduce the profits of profit-maximizing firms