When there is a recessionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; decline
B. increase; raise; decline
C. decline; lower; expand
D. decline; raise; decline
Answer: C
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In a court decision in June 2001, the Federal District Count of Appeals in Washington, D.C. found that Microsoft had violated the
A) Clayton Act. B) Robinson-Patman Act. C) Sherman Act. D) Celler-Kefauver Act.
GDP per capita is
A. Investment as a percentage of GDP. B. The same as GDP per worker. C. Total GDP divided by total population. D. The population divided by total GDP.
Since the 1980s, Wal-Mart stores have appeared in almost every community in America. Wal-Mart buys their goods in large quantities and therefore at cheaper prices. Wal-Mart also locates its stores where land prices are low, usually outside of the community business district. Many customers shop at Wal-Mart because of low prices and free parking. Local retailers, like the neighborhood drug store, often go out of business because they lose customers. This story demonstrates that:
A. consumers are boycotting local retailers. B. Wal-Mart engages in illegal acts of monopolization. C. there are diseconomies of scale in retail sales. D. there are economies of scale in retail sales. E. Wal-Mart is managed by ruthless business people.
If the cross-price elasticity of salt and pepper is positive the goods must be complements.
Answer the following statement true (T) or false (F)