Which of the following statements is false?
a. In a competitive market, the price mechanism encourages conservation of a depletable resource.
b. As the price of a depletable resource rises, its known reserves often increase.
c. Prices of depletable resources have risen in the twentieth century primarily because resource producers have exercised monopoly or oligopoly power.
d. Shortages of depletable resources occur primarily when governments or others interfere with the price mechanism.
c
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The unemployment rate will decrease when
A) people get discouraged and quit looking for work. B) the age of the labor force increases. C) the average workweek falls from 40 to 39 hours. D) the duration of unemployment increases.
Consider an economy where the growth rate of real GDP is 6% and the annual rate of inflation is 2%. If the quantity theory of money holds, the growth rate of money supply in the economy will be:
A) 6%. B) 2%. C) 8%. D) 4%.
If a profit-maximizing firm’s fixed cost of producing widgets falls,
A. its total cost curve is unaffected. B. its marginal cost curve shifts down. C. the firm will produce more widgets. D. the firm’s average profit per widget produced rises.
Anti-poverty programs
a. encourage saving among recipient groups. b. impose a very low marginal tax rate on income. c. are only made available to those with no other source of income. d. may discourage the poor from escaping poverty on their own.