The gap between labor and the expected Federal Reserve policy interest rate provides a key measure of which of the following:
A. the expected length of a coming global recession.
B. the movement of the US stock market.
C. the direction of movement of the Euro relative to the US dollar on the foreign exchange market.
D. the persistence and intensity of the liquidity crisis.
Answer: D
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In recent years unemployment rates in several European countries have been higher than unemployment rates in the United States. Many economists believe that European unemployment rates have been higher because
A) European firms hire many seasonal workers from other countries, and this tends to inflate unemployment rates in their countries. B) of the different methods used to measure unemployment. If similar methods were used, unemployment rates in Europe and the United States would be about the same. C) the size of the military is much larger in the United States and all military personnel are classified as employed. D) unemployment benefits are more generous in Europe than in the United States.
A monopolist always faces a demand curve that is:
a. perfectly inelastic. b. perfectly elastic. c. unit elastic. d. the same as the entire market demand curve.
If the average cost of flying the next flight is zero and one passenger is on the plane and has paid $50, should the next flight be flown?
A) Yes. B) No. C) Can't tell from the data provided. D) The plane should wait for at least one more passenger.
A country has $20 billion of domestic investment and net capital outflow of $10 billion. What is saving?
a. $10 billion b. $30 billion c. -$20 billion d. -$30 billion