Refer to Figure 24-1. Ceteris paribus, an increase in the growth rate of domestic GDP relative to the growth rate of foreign GDP would be represented by a movement from
A) AD1 to AD2. B) AD2 to AD1. C) point A to point B. D) point B to point A.
B
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Economists estimated that the price elasticity of beer is -0.30 and the income elasticity of beer is 0.09. This means that
A) an increase in the price of beer will lead to an increase in revenue for beer sellers and beer is a normal good. B) a decrease in the price of beer will lead to an increase in revenue for beer sellers and beer is an inferior good. C) an increase in the price of beer will lead to a decrease in the quantity demanded of beer and beer is a luxury. D) an increase in the price of beer will increase the quantity demanded of beer and beer is a normal good.
Compared to the United States, Japan's experience with monetary targeting during the 1978––1987 period performed
A) better with regard to the inflation rate and output fluctuations. B) worse with regard to the inflation rate and output fluctuations. C) better with regard to the inflation rate, but worse with regard to output fluctuations. D) worse with regard to the inflation rate, but better with regard to output fluctuations.
You have received your advanced degree in biochemistry with a specialty in recombinant DNA technology. Your colleagues wish to form a partnership to research adenovirus vectors
Your legal counsel advises you on the following aspects of a partnership, yet you tell her, based on your knowledge of economics, that you think one of the following points is INCORRECT. A) An advantage of the partnership would be that it is relatively easy to form, almost as easy as forming a proprietorship. B) The income of the partnership is treated as personal income and is subject only to personal taxation rates. C) The personal assets of each partner should be safe and would not necessarily be at risk due to claims by financial institutions. D) Partnerships often help reduce the costs of monitoring job performance in situations in which it is difficult to measure objectively.
In the early 20th century, streetcars in many southern cities required that white passengers sit in the front of the car while black passengers sat in the back. The firms that ran the streetcars were
a. in favor of the segregation laws because they lowered costs and increased profits. b. against the segregation laws because they increased costs and lowered profits. c. lobbied local governments to enact such laws because their customers were willing to pay more for service in order to maintain the segregation. d. concerned about the effects of smoking. Since blacks smoked more than whites, they were supportive of the segregation laws.