A business cycle is
A) the pattern of short-run upward and downward movements in total output.
B) the increase in consumer spending that accompanies an increase in disposable income.
C) the cyclical change in the nation's balance of trade.
D) the cyclical movement in the interest rates.
A
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PPP holds better for ________ countries
A) low-inflation B) poor C) rich D) high-inflation
Which of the following statements regarding historical costs is correct?
A) Historical costs represent what the firm paid for an input when it was purchased, adjusted for inflation. B) Historical costs vary depending on the method of depreciation a firm uses. C) Historical costs are a good indicator of the current opportunity cost of a piece of capital. D) Using historical costs can cause true economic profit to be under or over stated.
Bob and Bill can make 16 toys each if they devote 8 working hours in a day. Further, Bob can repair 4 cars and Bill can repair 2 cars, if they devote 8 working hours in a day. When these two individuals engage in trade, it would be advantageous for both if:
a. Bob specializes in the production of toys and Bill specializes in car repairing. b. Bob specializes in car repairing and Bill specializes in the production of toys. c. they specialize only in car repairing. d. they specialize only in the production of toys. e. they distribute their working hours evenly between the production of two goods.
Some of the promising approaches to reducing the natural rate of unemployment have to do with education, training, and job placement. What implementation problems do you anticipate?