In the long run, a year-long drought that destroys most of the summer's wheat crops causes permanently:
A. higher prices.
B. lower prices.
C. lower output.
D. None of these is true.
Answer: D
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During the recession of 2009, the consumption function temporarily shifted ________ as a fall in house prices ________ wealth and encouraged people to ________ more
A) downward; raised; spend B) downward; raised; save C) upward; lowered; save D) downward; lowered; save E) downward; lowered; spend
Winnie's Car Wash is a perfectly competitive firm. The table above shows Winnie's total product schedule. If the price of a car wash is $4, and Winnie maximizes his profit when he employs 4 workers, the wage rate is
A) $90 per day. B) $30 per day. C) $70 per day. D) $50 per day.
If a single household received all income, the Gini coefficient would
a. have a value of zero. b. be identical to the Lorenz distribution. c. have a value of 1. d. have a value of infinity.
The First Bank of the United States was able to control the money supply by
a. using open market operations b. presenting state banks with their notes for repayment in gold and silver c. changing the national currency on an annual basis d. merging the banking decision making of the executive and the legislative branches e. forcing the Senate Banking Committee to issue fiat money