When the price of oil rises unexpectedly, the equilibrium price level ________ and the unemployment rate ________ in the short run
A) rises; falls
B) rises; rises
C) falls; falls
D) falls; rises
Answer: B
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A barrier to entry is
A) the economic term for diseconomies of scale. B) illegal in most markets. C) anything that protects a firm from the arrival of new competitors. D) a factor that increases competition because firms must continue to operate in the market in which they were founded. E) the same as rent seeking.
Which of the following is least likely to be considered a capital input?
A) a sewing machine B) a tractor C) a telephone D) a ten dollar bill
The TB (i.e., X- M) is part of the short-run spending equation. With sticky prices, what would be the effect on the TB with an increase (depreciation) of the home nation's exchange rate?
a. Consumers in the home nation would find it more expensive to buy domestic goods compared to foreign goods, and the trade balance would decrease. b. Consumers in the home nation would cut back on both domestic and foreign goods and the trade balance would decrease. c. Consumers in the home nation would increase spending on both domestic and foreign goods, and the trade balance would be unchanged. d. Consumers in the home nation would increase spending on domestic goods and decrease spending on foreign goods, causing the trade balance to increase.
Which of the following is NOT a characteristic of populist regimes?
A) Nationalistic ideologies B) Focus on economic growth C) Focus on income redistribution D) Focus on controlling inflation