What will be the effect of an excess of planned investment over saving in a private closed economy with unemployed resources?
A) A decline in the rate of interest.
B) An unintended accumulation of inventories by businesses.
C) A rise in the real GDP.
D) The federal budget will automatically move toward a deficit.
Answer: C) A rise in the real GDP.
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What kind of game is shown in Scenario 13.11?
A) Axelrod's Paradox B) Stackelberg Match C) Prisoners' Dilemma D) Cournot's Duopoly Game E) It is not possible to tell what kind of game it is because the strategies have not been identified.
Tickets to the Michigan-Notre Dame football game are usually sold out in advance of game day. This suggests that
a. the price of the tickets must be very high or else people would not consider them valuable b. the price is set below the equilibrium level c. the football stadium is relatively small d. everyone who attends the game will enjoy it e. the price is determined primarily by the fixed supply of tickets
"Trade restrictions will stop foreign imports, which will increase American employment and protect American jobs." Most economists realize this argument is wrong. Can you explain why?
Of the following demographic groups in the United States, which is least likely to be poor?
a. female headed households with no husband present b. African-American households c. full-time workers d. part-time workers