If part of the labor force is unemployed, the foregone goods and services are
a. lost until the unemployed find jobs.
b. are replaced by unemployment insurance.
c. are lost forever.
d. are replaced by an equal amount of imports.
c
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When considering setting the transfer price at the market price of a product similar to the intermediate good that is already available on the market
a. It is important to recognize that the market price includes a margin above marginal cost b. It is OK if the product on the market includes costly features your downstream division does not use c. it is OK if the product on the market is inexpensive because its quality is lower than you use d. if it is similar enough, it is justification for you producing it in-house
The view Dambisa Moyo promotes in her book "Dead Aid" is:
A. so much corruption and embezzlement exists around aid money, it causes more disruption and inefficiency than it helps. B. aid distorts the marketplace, actually hurting local economies. C. the intended recipients of the money rarely receive it and, when they do, oftentimes don't know how to use it efficiently to actually progress. D. None of these statements is true.
(Exhibit: IS-LM Monetary Policy) Based on the graph, starting from equilibrium at interest rate r1 and income Y1, a decrease in the money supply would generate the new equilibrium combination of interest rate and income:
What will be an ideal response?
If a consumer buys less gasoline because gas prices decreased by 10 percent, even though all other prices have also decreased by 10 percent, then
A. wages and prices are too flexible. B. the consumer is paying too close attention to changes in relative prices. C. the consumer has been fooled by money illusion. D. inflation is not a problem in the economy.