For economists, "myopia" refers to:
A. visual nearsightedness.
B. people's difficulty in conceptualizing the future.
C. people's tendency to put too much emphasis on the future and ignore important present
concerns.
D. people's tendency to focus on microeconomic concerns because of an inability to
conceptualize macroeconomics.
Answer: B
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The minimum wage is a
A) factor that decreases unemployment because fewer people search for work if the minimum wage is increased. B) possible cause of job search because it lowers wages below their equilibrium. C) possible cause of job rationing because it raises wages above their equilibrium. D) possible cause of job rationing because it lowers wages below their equilibrium. E) government established highest wage that is legal to pay.
Firm A can produce a unit of output with 10 hours of labor and 5 units of material. Firm B can produce a unit of output with 5 hours of labor and 10 units of material
Firm C can produce a unit of output with 10 hours of labor and 10 units of material. If the prices of labor and material are $10 per hour and $5 per unit, respectively, which of these firms is the most technologically efficient? A) firm A only B) firm B only C) firm C only D) Firms A and B could both be technologically efficient.
Current equilibrium output equals $2,500,000, potential output equals $2,600,000, and the marginal propensity to consume equals 0.75. Under these conditions, a Keynesian economist is most likely to recommed
A) decreasing taxes by $25,000 B) decreasing taxes by $100,000 C) increasing government spending by $25,000 D) increasing government spending by $33,333 E) increasing government spending by $100,00
The most meaningful way to compare per capita Gross Domestic Product (GDP) across countries is to
A. first adjust each country's per capita Gross Domestic Product (GDP) to exclude all the goods and services that are not exchanged with other countries. B. first use purchasing power parity to factor in each country's true cost of living. C. use foreign exchange rates to convert each country's per capita Gross Domestic Product (GDP) into dollars. Then compare. D. assume that the cost of living in each country is the same as the United States' cost of living.