A recession hits hardest in those regions that:
a. have large numbers of labor unions.
b. are located near interstate highway systems and congestion.
c. do not have adequate natural resources.
d. produce capital goods and durable goods.
d
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Given the aggregate demand curve, an increase in the supply of a productive resource will:
a. increase output but leave prices unchanged b. decrease both output and prices. c. increase the price level and decrease output. d. decrease the price level and increase output. e. increase the price level but leave output unchanged.
Susan quit her job as an attorney to teach elementary school. She had to give up her love of fine wine and now buys box wines. What type of elasticity is represented here?
a. demand elasticity b. supply elasticity c. income elasticity d. cross-price elasticity
If lower-income households spend a greater share of their income on cigarettes than do higher-income households, then a tax that raises the price of cigarettes will
A) cause lower-income households to incur a greater loss of consumer surplus than that incurred by higher-income households. B) cause higher-income households to incur a greater loss of consumer surplus than that incurred by lower-income households. C) raise consumer surplus among higher-income households. D) cause consumer surplus to decline among smokers, but the relative impact cannot be determined from the given information.
Financial intermediaries reduce the costs of negotiation by
A) investing in a large number of projects with independent returns. B) gaining expertise in evaluating and monitoring investments. C) investing in a small number of projects with independent returns. D) pooling funds.