If D represents firms and B represents resource markets, then the flow from D to B is _____
a. revenue.
b. expenditures.
c. labor, capital, and natural resources.
d. income and expenditures.
e. wages, interest, rent, and profit.
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e. wages, interest, rent, and profit.
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Over the past two decades, the unemployment rates in
A) the Eurozone have been generally less than U.S. unemployment rates. B) the Eurozone have been generally greater than U.S. unemployment rates. C) the United Kingdom have almost always been much greater than the U.S. unemployment rates. D) Canada are less than the U.S. unemployment rates. E) Japan are much larger than those in the United States.
In real business cycle theory, the persistence of shocks to total factor productivity is justified by
A) the fact that some capital depreciates every period. B) the behavior of Solow residuals. C) the fact that Taylor rules have been used in post-war United States. D) the fact that capital takes some time to build.
The production possibilities curve illustrates the basic principle that
A. an economy's capacity to produce increases in proportion to its population size. B. if all the resources of an economy are in use, more of one good can be produced only if less of another good is produced. C. an economy will automatically seek that level of output at which all of its resources are employed. D. the production of more of any one good will in time require smaller and smaller sacrifices of other goods.
To qualify for a small business loan, one must have up to _________ of the required capital to put into the business.
a. one-tenth b. one-fifth c. one-quarter d. one-third e. one-half