Which of the following is a normative question?
A) How often do banks fail?
B) What is the value of a human life?
C) How much does government spending stimulate aggregate output?
D) How do we calculate the total value of activity in an economy?
B
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All of the following are possible characteristics of a monopoly except:
A) there is a single firm. B) the firm is a price taker. C) the firm produces a unique product. D) the existence of some advertising.
This graph shows what causes
A. cost-push inflation.
B. demand-pull inflation.
C. neither cost-push nor demand-pull inflation.
All else equal, a large decline in the real interest rate will shift the:
A. investment demand curve leftward. B. investment demand curve rightward. C. investment schedule upward. D. investment schedule downward.
If frost in Florida reduces the quantity of vegetables sold by 20 percent and increases their retail price by 30 percent, one can conclude that:
A. the demand has shifted to the right along a perfectly inelastic supply curve. B. the supply of vegetables has shifted to the left along an inelastic demand curve. C. the demand has shifted to the right along a perfectly elastic supply curve. D. the supply of vegetables has shifted to the left along an elastic demand curve.