When the housing bubble popped, the effect of the negative demand side shock and the negative supply side shock were the same on:
A. output, causing it to definitely decrease.
B. prices, causing them to definitely rise.
C. output, causing it to definitely increase.
D. prices, causing them to definitely fall.
Answer: A
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Using the midpoint method, if the price of an airline ticket from Orlando to Pittsburgh falls from $275 to $238, the percentage change in price is
A) 1442 percent. B) 14.42 percent. C) 15.54 percent. D) 13.45 percent. E) 68.00 percent.
Health care improvements often don't happen because:
A. they are too expensive to have any significant impact. B. national health insurance only exists in highly developed countries, like the U.S. C. doctors in government clinics have no incentive to practice good medicine. D. home remedies and traditional medicine are generally more expensive.
To what extent should monetary policy be used to fine-tune the economy?
In 2007, Google spent more than $2 billion on property and equipment. This is called
A. aggregate production investment. B. intermediate inputs. C. aggregate investment. D. investment in physical capital.