An economy is producing its Natural Real GDP when the unemployment rate is equal to the __________ unemployment rate
A) frictional
B) structural
C) sum of the frictional unemployment rate and the structural
D) seasonal
E) cyclical
C
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When the coupon rate on newly issued bonds decreases relative to older, outstanding bonds, what happens?
A) Older bonds will sell for more than their face value. B) Older bonds can still be sold at their face value. C) The market price of the older bond falls in the secondary market. D) The market price of the older bond rises in the secondary market.
"Most textiles worn by American consumers are produced in Asian and South American countries where the opportunity costs of production are lower." This observation refers to the:
a. law of supply. b. income elasticity of demand. c. principle of beneficial tariffs. d. principle of comparative advantage. e. law of decreasing returns to scale.
During the Great Recession, the prime rate quoted by most banks has fallen to ______%.
A. 5.5 B. 4.25 C. 3.25 D. 1.25
If you expect the price of gas to fall within a week, you will Question 3 options:
A. decrease your future demand for gas, because the expected price is relatively lower. B. decrease your future demand for gas, because the actual price of gas is relatively higher. C. increase your present demand for gas, filling up the gas tank of your car as soon as possible. D. decrease your present demand for gas, postponing going to the gas station until next week.