When a U.S. company shifts its call-center operations overseas to reduce costs, it is applying the economic concept of:
A. thinking at the margin.
B. comparative advantage.
C. diminishing returns.
D. using assumptions to simplify.
Answer: B
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Refer to Table 12.1. The inflation rate forecast for Japan is
A) -0.9%. B) 0.9%. C) 1.1%. D) It cannot be determined from the information provided.
According to the Ricardo-Barro effect, what is the effect on the real interest rate of a government budget surplus?
What will be an ideal response?
The RBC approach has workers allocating their labor effort over blocks of time, with periods of intense activity when wages are high alternating with slack periods of vacation and leisure
This makes the labor supply curve rather ________, with unemployment an entirely ________ phenomenon. A) steep, voluntary B) steep, involuntary C) flat, voluntary D) flat, involuntary
Fed policies since the mid-1980s have been intended to
A) steepen the growth path of natural real GDP. B) taper down the growth rate of actual real GDP as it approaches natural real GDP. C) accelerate the growth rate of natural real GDP whenever actual real GDP exceeds it. D) use the "runway" of natural real GDP as a springboard to faster growth.