Which component of consumption spending is the greatest in a typical industrialized economy?
A) services
B) durable goods
C) nondurable goods
D) new housing
Answer: A
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Refer to the below graph of the market for low-skilled labor. Sd is the supply of domestic resident workers, and St is the total supply of labor including undocumented workers. What is the equilibrium wage rate and equilibrium employment if there were no illegal immigration?
A. $14 and 142M, respectively
B. $13 and 135M, respectively
C. $14 and 120M, respectively
D. $17 and 135M, respectively
The impact of Hurricane Katrina on consumers in the economy was to make them very pessimistic about their future incomes. How does this increased pessimism affect the aggregate demand curve?
A) This will move the economy down along a stationary aggregate demand curve. B) This will move the economy up along a stationary aggregate demand curve. C) This will shift the aggregate demand curve to the left. D) This will shift the aggregate demand curve to the right.
Futures and options contracts are examples of derivative securities.
Answer the following statement true (T) or false (F)
The demand for which of the following commodities is likely to be most price inelastic?
A. Hamburgers B. Food C. Big Macs D. Sandwiches