Refer to Figure 15-11. In the dynamic model of AD-AS in the figure above, if the economy is at point A in year 1 and is expected to go to point B in year 2, and the Federal Reserve pursues no policy, then at point B
A) incomes and profits are rising.
B) the economy is below full employment.
C) the unemployment rate is very, very low.
D) there is pressure on wages and prices to rise.
E) firms are operating above their normal capacity.
B
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Sheila's Sports Shop is a very popular sporting goods store, which has a yearly revenue of $600,000. Sheila runs the business herself
Her alternative employment options are to be a college swimming coach for $50,000 per year or a construction worker for $40,000 per year. Sheila spends $230,000 purchasing goods for resale to her customers. She also has four employees, who each earn $25,000 per year. Sheila owns the building that her Sports Shop is housed in and she could have rented it out for $20,000 per year. Sheila's costs for the resources that she supplies to the business equal A) $70,000 per year. B) $90,000 per year. C) $0 per year. D) $330,000 per year.
Statistical discrimination is when you take action to:
A. reveal private information about someone else. B. reveal one's own private information. C. find out the opportunity cost of acquiring more information. D. fill gaps in your information by generalizing based on observable characteristics.
In the United States, an example of a common in-kind transfer would be:
A. public housing. B. earned income tax credit. C. Aid to Families with Dependent Children. D. All of these are in-kind transfers.
The gasoline tax
a. is similar to most other taxes in that it causes deadweight losses. b. produces the unfortunate side-effect of making the roads more dangerous. c. can be viewed as a corrective tax aimed at multiple negative externalities associated with driving. d. can be viewed as a command-and-control policy aimed at discouraging people from driving.