The policy mix that the Clinton administration sought in early 1993 was a
a. smaller budget deficit and tighter monetary policy.
b. smaller budget deficit and looser monetary policy.
c. larger budget deficit and looser monetary policy.
d. larger budget deficit and tighter monetary policy.
b
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A simple monopoly will maximize its profit by producing the quantity where
a. price and marginal cost are equal. b. the demand curve crosses the average cost curve. c. marginal cost reaches its minimum. d. marginal revenue equals marginal cost.
One of the most important changes in the composition of the labor force in the United States has been
A. the major increase in the number of women who work outside the home. B. the drop in the number of men who only work part-time. C. the steady decline in the number of women who work. D. the increase in the ratio of male workers to female workers. E. the major increase in the number of men who work away from the home or farm.
Clarity Dence pays $375 for a used acoustic guitar from the local music instrument dealer. The dealer himself purchased it for $150. In principle, how would this exchange affect GDP?
A) Nothing happens to GDP, because the guitar is a used good. B) GDP increases by $150. C) GDP increases by $225. D) GDP increases by $375. E) GDP increases by $525.
In labor markets, the substitution effect occurs when
A) a substitute good also functions as a complement. B) the cost of production falls enough that the firm will produce a larger amount of output. C) a change in the price of a substitute input causes the demand for labor to change in the same direction. D) a change in the price of a substitute input reduces the cost of capital.