Answer the following statements true (T) or false (F)
1. Minor cycles have fluctuations which are noticeable and severe.
2. The measurement of a business cycle is obtained by adjusting the real GDP for seasonal variation, the trend, and random fluctuations.
3. Since the Great Depression, business cycles have not been an issue in the United States.
4. A hurricane is considered an external force in business cycle analysis.
5. The period when the level of business activity has dropped as far as it is going to drop in a particular business cycle is known as the trough.
1. FALSE
2. TRUE
3. FALSE
4. TRUE
5. TRUE
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The U.S. central bank is the government institution that:
A) monitors financial institutions, controls the money supply, and invests in foreign assets. B) monitors financial institutions, controls the money supply, and sets certain key interest rates. C) monitors financial institutions, controls the money supply, sets certain key interest rates, and decides on political targets. D) controls the money supply and invests in foreign assets.
Which of the following is not an example of an efficiency-equity trade-off faced by economic agents?
A) Some U.S. colleges cut back on merit scholarships since these programs siphon money from need-based programs, thus harming lower-income students with greater financial need. B) According to an article by in the American Journal of Public Health by Edward Kaplan and Michael Merson of Yale University School of Medicine, the federal government's current method of allocating HIV-prevention resources is not cost-effective. Instead of allocating resources to states in proportion to reported AIDS cases, resources should flow first to those activities that prevent more infections per dollar and then to less and less effective combinations of programs and populations until funds are exhausted, even if it means that some populations would be left without any prevention services. C) Concerned about the falling birth rate, the French government has pledged more money for families with three children, in an effort to encourage working women to have more babies. D) The growing demand for corn by ethanol producers has led to a surge in the price of tortillas, a staple in the Mexican diet. To quell public outcry over rising tortilla prices, the Mexican government released government corn stocks at prices well below the market, and pressured states to impose price ceilings on tortillas.
The Consumer Financial Protection Bureau is part of the
A) Treasury Department B) Federal Reserve System C) Justice Department D) Commerce Department
If you are willing to sell your lawn mower business for $355,000 and someone offers you $420,000 for it, this transaction will generate:
a. There is no surplus created b. $65,000 worth of seller surplus and unknown amount of buyer surplus c. $30,000 worth of buyer surplus and $35,000 of seller surplus d. $65,000 worth of buyer surplus and unknown amount of seller surplus