In the short run (specificfactors) model, an FDI inflow into a country's manufacturing sector will cause:
a. an increase in the output of the agricultural sector.
b. an increase in the employment in the agricultural sector .
c. a decrease in the employment in the manufacturing sector .
d. an increase in the output and employment in the manufacturing sector.
Ans: d. an increase in the output and employment in the manufacturing sector.
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The demand curve for labor shows the ________ of labor employers wish to hire at any given salary or wage rate, under the ceteris paribus assumption.
a. quality b. frequency c. quantity d. type
Which of the following is not a macroeconomic question?
A. Should we have a constitutional amendment requiring the federal government to balance the budget each year? B. Should restaurants be required to list the number of calories for each product on their menus? C. How does a fiscal stimulus package affect gross domestic product? D. Should Congress enact tougher immigration laws to reduce unemployment?
Analysis that involves value judgments about economic policies is
A) positive economics. B) normative economics. C) microeconomics. D) macroeconomics.
Currently the Fed targets
A) the inflation rate B) the exchange rate. C) the federal funds rate. D) both the monetary base and the federal funds rate simultaneously. E) the price level.