If the aggregate supply curve is horizontal,
a. there are unemployed resources in the economy.
b. the economy is inside the production possibilities curve.
c. it is possible to increase output without driving up prices by putting unemployed resources to work.
d. All of these.
d. All of these.
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By hedging a portfolio, a bank manager
A) reduces interest-rate risk. B) increases reinvestment risk. C) increases exchange-rate risk. D) increases the probability of gains.
Juanita, a lawyer, can type faster than Jill, her secretary. Jill, on the other hand, does not have the ability or skills to practice law. Applying the principles of international trade to this situation, an economic consultant advises Juanita to:
a. fire Jill, practice law during the day, and do her own typing at night. b. practice law and leave all the typing to the secretary. c. divide her time equally between typing and practicing law. d. quit practicing law and take a job as a secretary. e. have Jill attend law school.
The U.S. antitrust laws
A) aid monopolies in their quest to dominate the market for a good or service. B) are outdated and rarely used anymore. C) promote competition. D) are administered by the Department of Commerce.
Which of the following is the BEST example of a monopsonist?
A. Hershey's Chocolate Factory in Hershey, PA B. Vinaka Coffee Shop in Carlsbad, CA C. a household hiring a gardener D. a turnip farmer hiring seasonal help