The impact of crowding out may be the least
A) when real GDP is above but close to potential GDP.
B) during a deep recession.
C) when real GDP is below but close to potential GDP.
D) during an expansion.
B
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Which of the following is NOT true about the $3 per pizza tax illustrated in the above figure?
A) It decreases consumer surplus by $90 thousand. B) It decreases producer surplus by $45 thousand. C) It creates a deadweight loss of $135 thousand. D) None of the above because they are all true.
By human capital, economists mean
A) machines that replace humans. B) machines engineered to avoid operator injury. C) the accumulated skill and knowledge of humans. D) humans who perform repetitive tasks.
Fred recently lost his job as a teller at the bank. The bank explained that they were replacing Frank and others with ATM machines. Fred falls into a category of unemployment known as
A) frictional unemployment. B) structural unemployment. C) cyclical unemployment. D) seasonal unemployment.
When a country goes to the IMF for foreign currencies to stabilize its own currency, it enages with the IMF in a(n)
a. one-time-only grant from the IMF b. purchase-and-resale (of that currency) agreement c. agreement concerning import controls that is administered jointly by the IMF and the country d. exchange control agreement that is the prerogative of the IMF alone e. agreed upon devaluation