Economists use the word "capital" to mean
A) purchases in the market for stocks and bonds.
B) the tools, instruments, and other produced goods used to produce goods and services.
C) the workers that firms employ to produce goods and services.
D) the funds that firms use to buy and operate their businesses.
E) people's skills and talents.
B
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Describe each of the following as a positive demand shock, a negative demand shock, a positive supply shock, or a negative supply shock, and specify how each are represented on the Phillips curve
a. a sudden increase in oil prices b. a large increase in spending on residential construction c. a sudden decrease in household wealth resulting from a stock market crash d. a substantial increase in productivity following technological advancements
An oligopoly has ______ sellers in the market.
A. 0 B. 1 C. 3 D. many
Appropriate fiscal policy depends on the other major tool of governmental stabilization policy:
a. trade policy. b. tax policy. c. monetary policy. d. labor market policy.
A ________ externality occurs when a market transaction affects others through market prices
A) positive B) negative production C) negative consumption D) pecuniary