The natural level of employment (N) will increase when which of the following occurs?
A) an increase in the markup of prices over costs
B) a reduction in unemployment benefits
C) an increase in the actual unemployment rate
D) all of the above
E) none of the above
B
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Trade theorists have proven that the gains from international trade
A) must raise the economic welfare of every country engaged in trade. B) must raise the economic welfare of everyone in every country engaged in trade. C) must harm owners of "specific" factors of production. D) will always help "winners" by an amount exceeding the losses of "losers." E) usually outweigh the benefits of protectionist policies.
Here is a consumption function: C = C0 + MPC(Yd). If consumption is $2,000, MPC =0.75, and disposable income is $2,000, what does autonomous consumption equal?
A) $950 B) $3,500 C) $500 D) $4,500 E) none of the above
How do most people respond when their disposable income increases?
a. They spend all of the increase. b. They save all of the increase. c. They save some and spend some. d. They neither spend nor save.
________ involves the direct exchange of one good for another without the use of money
a. Comparative advantage b. Barter c. Economic growth d. International trade