An economy in which output has decreased and prices have increased would suggest that there has been a:
A. negative demand side shock.
B. negative supply side shock.
C. positive demand side shock.
D. positive supply side shock.
Answer: B
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The labor force consists of
A) the number of people who unemployed and who are actively seeking work. B) the number of people who are employed. C) the number of people who are employed minus the number of the people who are unemployed. D) all people in the population aged 16 and over who are not in jail, a hospital, or an institution or in the U.S. Armed Forces. E) the number of people in the working-age population who are employed or unemployed.
Sharon wants a career as an accountant. During the summer she turns down a job painting houses at $6 an hour to work in an accounting office for $4 an hour. Which of the following would not explain her choice?
a. Accounting is more prestigious. b. The summer accounting job will help her get a full-time job in accounting when she graduates. c. She prefers to work inside. d. She would face the law of diminishing marginal utility if she had more goods. e. She dislikes the messiness of painting.
Which of the following is true? a. Checking account deposits and time deposits constitute assets of banks
b. M2 includes M1, plus saving accounts, time deposits (except for some large-denomination certificates of deposits), and money market mutual funds. c. reserves times the required reserve ratio equals deposits. d. Money is destroyed when banks make loans.
A quota brings a more serious misallocation of resources than a tariff.
Answer the following statement true (T) or false (F)