When a country forgoes its own currency and starts using another country's currency as its own, we say that this country has
A) created a currency board.
B) undergone dollarization.
C) adopted a managed exchange system.
D) adopted an exchange rate monetary system.
B
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A lumberjack loses his job because timber cutting restrictions were imposed by the EPA to protect the spotted owl habitat. This lumberjack would be
A) structurally unemployed. B) cyclically unemployed. C) frictionally unemployed. D) seasonally unemployed.
Graphically, the average productivity of labor would be illustrated by the slope of the marginal productivity curve at the relevant point
a. the slope of the total product curve at the relevant point. b. c. the negative of the slope of the marginal productivity curve at the relevant point. d. the slope of the chord connecting the origin with the relevant point on the total output curve.
An increase in the stock of capital will cause the
A. production possibility frontier to shift outward. B. economy to move closer to its production possibility frontier. C. production possibility frontier to shift inward. D. economy to move down the production possibility frontier.
Refer to the graph below. Assume that the economy is initially at full-employment equilibrium at point A. If AD increases, then the long run equilibrium point will be at point:
A. A
B. B
C. C
D. D