Refer to Table 2-19. Which of the following statements is true?
A) Betty has an absolute advantage in making benches and Wilma in making statues.
B) Wilma has an absolute advantage in making both products.
C) Betty has an absolute advantage in making both products.
D) Betty has an absolute advantage in making statues and Wilma in making benches.
C
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Use the figure below to answer the following question.
An increase in quantity supplied caused by a change in price is depicted by a
A. movement from point y to point x. B. shift from S1 to S2. C. movement from point x to point y. D. shift from S2 to S1.
How does contractionary monetary policy affect net exports in the short run?
A) Contractionary monetary policy reduces exports and increases imports. B) Contractionary monetary policy increases exports and reduces imports. C) Contractionary monetary policy increases exports and increases imports. D) Contractionary monetary policy reduces exports and reduces imports.
Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential B. expansionary; higher; potential C. recessionary; lower; potential D. recessionary; lower; lower
What does the unemployment rate represent?
(A) The percentage of the total population that is not employed. (B) The total number of people who are unable to find work. (C) The total number of people who are not employed. (D) The percentage of the total labor force that is unemployed.