Beginning from the full-employment level of real GDP, an increase in one of the components of the aggregate demand curve will increase the:
A. average level of prices (CPI).
B. unemployment rate.
C. natural level of real GDP.
D. level of investment spending.
Answer: A
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A public good is
A) a good that is rivalrous and nonexcludable. B) a good that is rivalrous and excludable. C) a good that is nonrivalrous and excludable. D) a good that is nonrivalrous and nonexcludable.
In reference to funding industrywide advertising, if the majority of managers free ride, which of the following is likely to occur?
A) The industrywide marginal benefit of advertising will fall below its marginal cost. B) The industry will maximize its joint profit. C) The industrywide marginal benefit of advertising will equal its marginal cost. D) The industrywide marginal benefit of advertising will exceed its marginal cost.
In June 2009 the Bureau of Labor Statistics reported an adult population of 234.9 million, unemployment of 12.4 million, and employment of 141.6 million. Based on these numbers the labor-force participation rate was
a. 154/234.9. b. 141.6/234.9. c. 141.6/154. d. None of the above is correct.
The financial system is inherently more unstable than most other industries due to the fact that:
A. a single firm failing in banking can bring down the entire system; this isn't true in most other industries. B. banks deal in paper profits, not in real profits. C. while in most other industries customers disappear at a faster rate, in banking they disappear slowly so the damage is done before the real problem is identified. D. there is less competition than in other industries.