Unemployment normally arises when:
A) labor markets are frictionless.
B) wages are above the market clearing wage level.
C) wages are below the market clearing wage level.
D) wages are equal to market clearing wage level.
B
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The De Beers diamond mining and marketing company of South Africa became one of the most profitable and longest-lived monopolies in history. Which of the following has always threatened De Beers' control of the diamond market?
A) At different times in the past some countries have banned the importation of diamonds from South Africa for political reasons. B) Competition from imitation diamonds. Technology has made it possible to make fake diamonds look exactly like real diamonds. C) Competition from other gemstones, including rubies and emeralds, that have become more popular over time. D) Since few diamonds are ever destroyed, De Beers has constantly faced possible competition from other firms reselling diamonds.
In a bank’s balance sheet, its assets include
a. reserves, loans, and bonds. b. checking accounts and savings accounts. c. checking accounts, loans, and U.S. securities. d. reserves, loans, and savings accounts.
You are a collector of antique coins. You purchase a silver dollar minted in 1898 . Is this sale included in GDP for the current year?
a. Yes, provided the coin is in mint condition. b. No, it is not. c. No, unless the coin has been in circulation. d. Yes, it is. e. Only if it is part of the current money supply.