The invention of new technology that can double the amount of gold extracted from raw ore will lead to a
A. higher world price of gold, since mining companies must pay for the new machinery.
B. lower world price of gold, since any amount of gold output is now cheaper to produce.
C. higher world price of gold, because miners’ wages must double as their productivity doubles.
D. lower world price of gold, but only if new mining companies are not allowed to enter the industry.
Answer: B
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Structural unemployment includes people who become unemployed from
A) changes in the business cycle. B) technological changes. C) going back to school. D) changes in the seasons. E) normal changes in the labor force.
The primary factor that caused most economists to lose their faith in the classical approach to macroeconomic policy was
A) the high levels of unemployment that occurred during the Great Depression. B) the presence of both high unemployment and high inflation during the 1970s. C) the theoretical proof that classical ideas were invalid. D) the evidence that classical ideas were useful during economic booms, but not during economic recessions.
Wild animals are likely to be
A) private property. B) endangered species. C) domesticated by humans. D) all of the above.
Which of the following is an example of a normative - as opposed to a positive - statement?
a. The discount rate is the interest rate the Federal Reserve charges banks to borrow funds. b. The US income tax rate increases with the amount of income earned. c. The government should increase the tax on gasoline. d. The US unemployment rate increased to 10 percent in 2009.