If a country raises its budget deficit then
a. both its supply of and demand for loanable funds shift.
b. its supply of but not its demand for loanable funds shifts.
c. its demand for but not its supply of loanable funds shifts.
d. neither its supply nor its demand for loanable funds shift.
b
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If a monopoly wants to sell a greater quantity of output, it must
A) lower its price. B) raise its price. C) tell consumers to buy more because it's a monopolist. D) raise its marginal cost. E) change its fixed costs.
A major U.S. motive for negotiating a free-trade agreement with Mexico was
a. to gain increased access to Mexico's huge oil reserves b. to achieve ultimately political union with Mexico c. as a stepping-stone to the formation of a free-trade bloc in the whole Western Hemisphere d. to appease Canada e. to appease GATT
If demand price elasticity measures 2, this implies that consumers would:
a. buy twice as much of the product if the price drops 10 percent. b. require a 2 percent drop in price to increase their purchases by 1 percent. c. buy 2 percent more of the product in response to a 1 percent drop in price. d. require at least a $2 increase in price before showing any response to the price increase. e. buy twice as much of the product if the price drops 1 percent.
The unemployment rate may overestimate the true extent of unemployment if: a. many part-time employees would like to work full-time, but are unable to get the additional work. b. many people become discouraged and cease looking for work
c. people falsely claim that they are actively seeking work in order to receive unemployment benefits. d. all of the above