Using the expenditure approach, GDP equals:
A. C + I + G + (X ? M).
B. C + I + G + (X + M).
C. C + I ? G + (X ? M).
D. C + I + G ? (X ? M).
Answer: A
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During the 1950s, the Fed targeted
A) M1. B) M2. C) the monetary base. D) money market conditions.
Cyclical unemployment is:
A. unemployment caused by short-term economic fluctuations reflected in GDP growth. B. unemployment resulting from a mismatch between the skills workers can offer and the skills demanded. C. unemployment caused by workers who are changing their location, job, or career. D. the effect of wages remaining persistently above the market-clearing level.
There are apartments in Chicago whose rooftops overlook Wrigley Field where the Chicago Cubs play at home. On game day you can find free riders on the roof enjoying _____________
a. a near public good b. free property rights c. a positive externality d. a pure public good e. excess utility
When the conditions in a competitive price-taker market are such that the firms are consistently unable to cover their production costs,
a. the firms will suffer short-run economic losses that will be exactly offset by long-run economic profits. b. all firms will go out of business since consumers will not pay prices that enable firms to cover their production costs. c. some firms will exit from the industry, and market price will rise until the remaining firms can earn the normal rate of return. d. resource prices will increase, competition will decline, and eventually the firms in the industry will earn monopoly profit.