In contrast to changes in government spending, tax changes affect spending
A. directly.
B. in the same proportion.
C. by a greater amount.
D. indirectly.
Answer: D
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Andrea would be considered unemployed if she is
a. working at a part-time job but is looking for a full-time job. b. absent from her regular job as the result of illness. c. working at a full-time job but is looking for a part-time job. d. not working and is looking for a part-time job.
Which of the following is necessary for the presence of competition in a market?
a. Government regulations that assure firms will make excess profits. b. Suppliers that offer a homogeneous product. c. A price that always equals per-unit production costs. d. Low barriers to entry into the market.
If the nominal wage rises by 4 percent, and the price level rises by 7 percent, the real wage will:
A. be unaffected. B. rise by 3 percent. C. fall by 3 percent. D. rise by 11 percent.
If Kami can produce 40 portable power banks or 30 cellphones during a month's time, while Sally can produce 10 portable power banks or 20 cellphones, then it is correct to state that
A) Kami has a comparative advantage in producing portable power banks. B) Kami has a comparative advantage in producing both portable power banks and cellphones. C) Sally has a comparative advantage in producing both portable power banks and cellphones. D) Sally has an absolute advantage in portable power banks.