The aggregate demand curve is downward sloping for all of the following reasons EXCEPT for the:
A. effect of inflation on the value of money.
B. impact of inflation on the consumer price index (CPI).
C. response of the Fed to inflation through its policy reaction function.
D. distributional impact of inflation on spending.
Answer: B
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An example of an "insider trading" law is that
A) no officer of a corporation is allowed to hold stock in that corporation. B) an officer of a corporation must report to the SEC any buying or selling of stock in that corporation. C) no dealer in domestic securities is allowed to handle foreign securities. D) no more than 25 percent of the outstanding shares of a corporation may be held by the executives of that corporation.
In both price-taker and competitive price-searcher markets, the long-run market price of a good will be equal to the
a. average total cost of producing the good. b. average variable cost of producing the good. c. average fixed cost of producing the good plus a normal return on that cost. d. marginal revenue derived from the sale of an additional unit of the good.
Which of the following is not a leading actor in labor markets?
A. workers B. government C. firms D. consumers E. unions
Which rationing system leads to the most efficient use of available resources?
A) free market B) physical force C) first come, first served D) random assignment