Which of the following can best be characterized as a "Black Swan" event?
A) decline in stock prices due to a recession
B) rising market interest rates as the Fed tightens monetary policy
C) a financial crisis causing credit to dry up
D) an individual firm unexpectedly filing for bankruptcy
C
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The unemployment rate is the number of people unemployed divided by the
A) number of people employed, then multiplied by 100. B) working-age population, then multiplied by 100. C) labor force, then multiplied by 100. D) labor force participation rate, then multiplied by the population. E) population, then multiplied by 100.
Suppose that, at a rental rate of $1000 per month, 650 residents wish to rent apartments and that landlords offer 800 apartments available for rent. Which one of the following statements is then TRUE?
A) There is a shortage of 150 apartments. B) There is an excess demand for apartments. C) The market clearing rental price of apartments is too low. D) The market clearing rental price of apartments is less than $1000 per month.
Once either expansionary or contractionary fiscal policy has been undertaken,
A) aggregate demand will respond quickly and the problems in the economy will be corrected. B) aggregate demand will respond quickly in the short run but the economy will not improve in the long-run. C) a time lag exists between implementation and the results of the policy. D) taxes will need to be adjusted because of the recognition time lag.
If the minimum efficient scale in the production of rubber exceeds the quantity of rubber any individual tire producer buys,
a. tire producers should integrate backward into rubber production b. there will be a monopoly in rubber production c. tire producers should not integrate backward into rubber production d. tire producers will be charged prices above what the cost of producing rubber themselves would be e. tire companies will switch to fiberglass