An increase in the proportion of the population that is unemployed above the normal rate is best represented in Figure 1.3 and using PP1 by a movement from point
A. C to point D.
B. C to point A.
C. D to point C.
D. E to point D.
Answer: B
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The quantity of money held in response to interest rates is the:
a. transactions motive for holding money. b. precautionary motive for holding money. c. speculative motive for holding money. d. unit-of-account motive for holding money.
Which of the following statements is true?
a. The speculative demand for money at possible interest rates gives the demand for money curve its upward slope. b. There is an inverse relationship between the quantity of money demanded and the interest rate. c. According to the quantity theory of money, any change in the money supply will have no effect on the price level. d. All of these are true.
Which of the following statements brings out the relationship between the value of marginal product (VMP) and the marginal revenue product (MRP)?
a. They are the same for a firm selling in a perfectly competitive market structure. b. They are the same for a firm purchasing inputs in a perfectly competitive market structure. c. VMP is greater than MRP when a firm is perfectly competitive in the product market. d. VMP is less than MRP when a firm is perfectly competitive in the product market. e. They are same when a firm is a monopolist.
If electric utilities continually reduce their emissions of sulfur? dioxide
A) the utilities will eventually be forced to go out of business.
B) the marginal cost of further emissions will rise.
C) the marginal benefit of additional emissions will rise.
D) the total benefit of sulfur dioxide emissions will fall.