Over a 10-year period, the Consumer Price Index doubled. On the basis of this information and using the rule of 72, we can say that the average annual rate of inflation over this period was approximately
A. 9%.
B. 7%.
C. 5%.
D. 10%.
Answer: B
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Generally speaking, protection from foreign competition benefits:
a. both domestic producers and foreign producers. b. both domestic consumers and foreign consumers c. domestic consumers and foreign consumers. d. neither domestic producers nor foreign producers. e. domestic producers at the expense of domestic consumers.
An example of an underemployed resource is a(n)
a. farmer in Illinois who plants corn instead of wheat b. auto mechanic who is laid off from his job c. welfare recipient who doesn't work d. retired senior citizen who doesn't work e. person with a Ph.D. in chemistry who drives a taxi as a full-time job
Labor unions
a. prefer to operate in states with right-to-work laws. b. are similar to cartels. c. play a larger role in the current U.S. economy than in European countries such as Norway and Sweden. d. attract a membership of about 25 percent of current U.S. workers.
The Federal Reserve System is composed of:
A. three branches with overlapping responsibilities. B. six branches with overlapping responsibilities. C. twelve branches with clear responsibilities. D. five branches with clear responsibilities.