Assume the economy is at full employment. Which of the following would you expect if oil prices suddenly decreased?
a. A recession
b. A decrease in employment below its full-employment level
c. An economic contraction
d. A technological breakthrough
e. An increase in employment above its full-employment level
E
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The Rule of 70 can be used to calculate the
A) 70 percent level of the economic growth rate. B) population growth rate per year. C) economic growth rate per year. D) economic growth rate per month. E) number of years it would take for the level of any variable to double.
The reform of the welfare system passed by Congress and signed by President Clinton changed the benefits for welfare recipients as it
a. decreased the number of people eligible for benefits, increased the benefit amount for those still eligible, and set a maximum coverage period of five years b. decreased the number of people eligible for benefits, cut the benefit amount for those still eligible, and set a maximum coverage period of three years c. increased the number of people eligible for benefits, cut the benefit amount for those still eligible, and set a maximum coverage period of three years d. decreased the number of people eligible for benefits, cut the benefit amount for those still eligible, and set a maximum coverage period of five years e. froze the number of people eligible for benefits, cut the benefit amount for those still eligible, and set a maximum coverage period of three years
Wages and prices are many times higher today than they were 30 years ago, yet people do not work a lot more hours or buy fewer goods. How can this be?
Tom is maximizing utility by buying three packs of bubble gum and four packages of Skittles. Given diminishing marginal utility, if the price of Skittles rises, the principle of rational choice tells us that Tom will buy:
A. more Skittles, raising the opportunity cost of not consuming Skittles. B. fewer Skittles, lowering the opportunity cost of not consuming Skittles. C. fewer Skittles, raising the opportunity cost of not consuming Skittles. D. more Skittles, lowering the opportunity cost of not consuming Skittles.