In the Keynesian model, with efficiency wages,
A. the full-employment level is determined at the intersection of the labor demand curve and the efficiency wage line.
B. an increase in labor supply increases employment.
C. a decrease in labor supply shifts the FE line to the left.
D. the full-employment line is determined where the quantity of labor demanded equals the quantity of labor supplied.
Answer: A
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In 2006, the European Union (EU) threatened to ban imports of long-grain rice because traces of genetically modified rice were found mixed in to commercial supplies. Instead of a ban, suppose the EU placed a tariff on the import of long-grain rice
Which of the following would be an outcome of this tariff? A) The EU would gain tariff revenue. B) Deadweight loss would decrease. C) European rice producers would decrease production. D) The price of long-grain rice in the EU would not change.
Over the past seventy-five years, power within the Federal Reserve has shifted from
A) the Federal Reserve Banks to the Board of Governors in Washington. B) the Board of Governors to the Federal Reserve Bank of New York. C) domestic Federal Reserve banks to foreign Federal Reserve banks. D) the Federal Reserve Bank of New York to the Federal Reserve Bank of Dallas.
Trade restrictions imposed in the name of national security have been recommended by protectionists in order to:
a. develop strong defense-related industries. b. avoid dependence on foreign suppliers during wartime. c. reduce the necessity of stockpiling strategic supplies. d. all of these.
Velocity can be defined as:
a. the turnover rate of money b. the speed at which economic activity takes place. c. the speed at which multiplier effect takes place. d. the speed at which tax cuts are spent.