One way the government can boost the economy out of a recession is:
A. with public announcements telling the public to save their money.
B. by increasing government spending.
C. by setting price ceilings on most goods so people can afford them.
D. None of these will help an economy in recession.
Answer: B
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Two reasons why a few individuals earn very high pay in the sports and entertainment fields are that their
a. marginal productivity is high and entry into those industries is restricted b. marginal productivity is high and the cross-elasticity of demand between their services and the services of other employees is also high c. marginal productivity is high and there is open competition for their talents d. wage elasticity of supply is high and there is open competition for their talents e. marginal productivity is high and they are prohibited from changing employers
A horizontal demand curve shows that demand for a good is _____
a. perfectly inelastic b. moderately inelastic c. unit-elastic d. moderately elastic e. perfectly elastic
Suppose the real interest rate in the economy is 3% and the nominal interest rate is 6%, what is the current inflation rate?
a. 18% b. 9% c. 2% d. 3% e. 2.5%
A highly oligopolized industry would have a ______ Herfindahl-Hirschman Index and a ______ concentration ratio.
A. high; high B. low; low C. high; low D. low; high