The Dot-Com bubble in the U.S. occurred due to:
a. a rapid fall in the stock prices of manufacturing companies
b. a rise in housing prices relative to the rental cost of housing.
c. a dramatic rise in the shares of stock in the South Sea Company.
d. an unforeseen rise in the price of tulip bulbs which were the major exports of the U.S at that time.
e. the exceptionally high price-to-earnings ratios of high-tech companies in the U.S.
e
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You are an economic advisor to the president. You are asked to recommend a policy to promote long-term economic growth in the economy. Which of the following policies would you choose?
A) a reduction in sales taxes B) a reduction in taxes on luxury yachts C) an investment tax credit D) all of the above
A perfectly competitive firm with a random demand has an expected marginal revenue that is ________ its expected price.
A) greater than B) exactly double C) less than D) equal to
According to the table shown, what can be said about the cost of living in 2010?
A. It was lower than in the base year.
B. People experienced a decrease in the cost of living because the CPI is less than 100.
C. People experienced an increase in the cost of living because the CPI isn't over 100.
D. There must have been a recession because the CPI is less than 100.
The amount of money available in the economy:
A. is called the money supply. B. is managed by the Federal Reserve. C. varies depending on what is considered money. D. All of these are true.