If investment has a high sensitivity to the interest rate, the IS curve is rather __________, so that monetary policy has a __________ effect on GDP
A) flat; strong
B) flat; weak
C) steep; strong
D) steep; weak
A
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If Happy Cows, a milk producer, purchases a dairy farm, this is an example of _______
A) backward integration B) forward integration C) divestiture D) outsourcing
Under rent control, landlords cease to be responsive to tenants' concerns about the quality of the housing because
a. with shortages and waiting lists, they have no incentive to maintain and improve their property. b. they become resigned to the fact that many of their apartments are going to be vacant at any given time. c. with rent control the government guarantees landlords a minimal level of profit. d. with rent control it becomes the government's responsibility to maintain rental housing.
Which of the following comparisons best illustrates a compensating differential?
a. John's wage is higher than Jane's because the value of John's marginal product is higher than Jane's. b. Karl's wage is higher than Kay's because Karl is very personable, and Kay is very gruff. c. Beth's wage is higher than Bill's because Beth's job may cause long-term health problems, and Bill's job will not impair his health. d. All of the above are good illustrations of compensating differentials.
B. Structural unemployment.
A. Frictionally unemployed B. Structurally unemployed C. Cyclical unemployed D. Seasonally unemployed