When the demand curve for an input is a derived demand this means that
A) the demand curve is derived from the demand for the final product being produced.
B) the demand curve depends upon the MFC.
C) the law of diminishing marginal product does not hold.
D) the demand curve slopes upward.
Answer: A
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During a recession, unemployment benefit payments increase without the need for any government action. This increase is an example of
A) discretionary monetary policy. B) discretionary fiscal policy. C) automatic fiscal policy. D) government expenditure but it is not an example of either discretionary or automatic policy. E) automatic monetary policy.
Which of the following presidents is remembered for his role in championing American conservation legislation?
a. Warren G. Harding b. Abraham Lincoln c. Ulysses S. Grant d. Theodore Roosevelt
In a recession, the trade balance often improves because
a. service exports exceed manufactured good exports b. banks sell depressed assets c. fewer households can afford luxury imports d. direct investment abroad declines e. the capital account exceeds the current account
Refer to the following graph to answer the question:
Suppose price rises from $90 to $110. Using representative arrows, the quantity effect is a relatively ________ (short, long) arrow pointing ________ (upward, downward).
A. short; upward B. short; downward C. long; downward D. long; upward