Which of the following is concerned with the distribution part of resource allocation?
a. An economy decides to produce equal quantities wheat, rice, and clothes.
b. An economy decides to use 25% of the available capital for producing clothes.
c. An economy decides to ration 40% of its output to low income groups.
d. An economy decides to use more labor for producing wheat and rice.
c
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The real effect of a given monetary shock is larger the more stable the underlying monetary environment
a. true b. false
Joe receives a 20 percent increase in his income from his part time job and as a consequence decreases his consumption of Ramen noodles by 10 percent. Hence to Joe, Ramen noodles are
A) a normal good with a price elasticity of demand of 0.5. B) a substitute good with a cross elasticity of 0.5. C) a good with a price elasticity of supply of -0.5. D) an inferior good with an income elasticity of -0.5. E) an inferior good with an income elasticity of -2.0.
The difference between voluntary and involuntary unemployment is that:
a. involuntary unemployment exists when wages are high. b. voluntary unemployment exists in equilibrium. c. voluntary unemployment falls as wages rise. d. both b and c. e. all of the above.
Which of the following will shift the Keynesian short-run aggregate supply curve downward and to the right?
A) a rise in the price level B) a fall in the price level C) a decrease in input costs D) an increase in input costs