Which of the following would be an example of passive policymaking?
A. establishing a system of automatic tax stabilizers
B. government spending decreases intended to decrease real Gross Domestic Product (GDP)
C. marginal rate tax cuts intended to increase real Gross Domestic Product (GDP)
D. raising the money supply when the unemployment rate increases.
Answer: A
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Refer to Figure 24-3. Suppose the economy is at point C. If government spending decreases in the economy, where will the eventual long-run equilibrium be?
A) A B) B C) C D) D
Integration strategies are sometimes collectively referred to as which of the following categories of strategies?
A) Horizontal integration B) Diversification C) Vertical integration D) Stuck-in-the-middle E) Hierarchical integration
A perfectly competitive firm acts as a ___________, so it calculates total revenue by multiplying the given market price by the quantity of output the firm chooses.
a. natural monopoly b. price taker c. technological monopoly d. drag on the market
Generally, exchange rates are quoted as a single price of a unit of foreign currency rather than a ratio because:
a. the ratio of the units of home currency to units of foreign currency is always equal to one. b. the denominator is always equal to one. c. the price is fixed by the government. d. the rate is adjustable in increments of 25 basis points.