Between 2000 and 2007, many Americans borrowed more money than they could afford to pay back. What was the impact of this borrowing on the economy?
A. An immediate reduction in the profits of lenders
B. Increased economic growth
C. Large losses at financial institutions
D. Reduced interest rates
Answer: C
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If the price level rises by 2 percent and workers' money wages increase by 2 percent, then the
A) quantity of labor supply decreases. B) quantity of labor supply increases. C) quantity of labor supplied does not change because there is no change in the real wage rate. D) More information about the dollar change in the price level and money wage rate are needed to answer the question.
Jonathan is currently enrolled in college full-time; however, he works part-time at a restaurant on weekends to earn some spending cash. Jonathan would be considered:
a) unemployed b) employed c) not in the labor force d) institutionalized
Which among the following is the strongest determinant of an industry's technological progressiveness?
A. The scientific character of its industry and the number of technological opportunities available. B. The size of the industry concentration ratio; the lower the ratio, the greater the firm's technological progressiveness. C. The Herfindahl index in the firm's industry; the higher the index value, the greater the firm's technological progressiveness. D. The amount of retained earnings in the industry.
It has been argued that a monopolistically competitive industry involves "waste" because
A. they end up producing to the right of the minimum of the average total cost curve and the price is below the marginal cost. B. the firms do not equate marginal cost to marginal revenue to find the profit maximizing price and output. C. there is too much product differentiation making shelves too crowded. D. the firms do not produce at the minimum of the average total cost curve and price is above marginal cost.