Which of the following statements best depicts laypeople's explanation of the Great Depression at that time?
A. Unions were keeping the good jobs for themselves.
B. An oversupply of goods had glutted the market.
C. Government policies kept prices too high.
D. An oversupply of goods is impossible.
Answer: B
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It takes a machine 2 hours to make a unit of Good X, and 1 hour to make a unit of Good Y. If the machine can be used for 10 hours, which of the following combinations will lie on its production possibilities curve?
A) 5 units of Good X and 2 units of Good Y B) 3 units of Good X and 4 units of Good Y C) 2 units of Good X and 2 units of Good Y D) 6 units of Good X only
Monopolies exist for each of the following reasons, EXCEPT:
a. competitors are legally unable to challenge them. b. they have control over resources with very few good substitutes. c. it is sometimes inefficient to have competition in certain markets. d. it increases both producer and consumer surplus.
Assume that foreign capital flows from a nation increase due to political uncertainly and increased risk. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the quantity of real loanable funds per time period and real GDP in the context of the Three-Sector-Model? a. The quantity of real loanable funds per time period falls and real GDP
falls. b. The quantity of real loanable funds per time period falls and real GDP rises. c. The quantity of real loanable funds per time period rises and real GDP remains the same. d. The quantity of real loanable funds per time period and real GDP remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
Other things the same, if workers and firms expected inflation to be 2%, but it is only 1% then
a. employment and production rise. b. employment rises and production falls. c. employment falls and production rises. d. employment and production fall.