The Standard & Poor's 500 Index differs from the Dow Jones Industrial Index because:
A. it is a price-weighted index, where the DJIA is a value-weighted index.
B. it takes into account the prices of more stocks and it uses a different weighting scheme.
C. larger firms are less important in the S&P 500 than in the DJIA
D. it takes into account the stock prices of 500 of the largest firms, which is less than the DJIA
Answer: B
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Mike’s Mealbarn is a competitive firm in the hot dog stand business. How will each of the following affect the short-run demand for labor at Mike's?
(i) Mike buys a new grill that makes the cooks more productive. (ii) Increasing numbers of people become vegetarians. (iii) A health inspector fines Mike $500 for unsanitary conditions, but fortunately Mike's customers don't learn about it.
What does it mean for a country to have an absolute advantage in producing a product?
What will be an ideal response?
Which of the following is a desirable characteristic in an economy?
A. sustained deflation B. high inflation C. growing per-capita output D. cyclical unemployment
The Laffer curve has proven to be accurate for tax rates above 10 percent.
Answer the following statement true (T) or false (F)