As firms find themselves producing closer to their maximum capacities, the most likely outcome would be that the economy's
a. investment curve will shift upward
b. investment curve will shift downward
c. consumption curve will shift downward
d. consumption curve will shift upward
e. position along the existing consumption curve will move upward
A
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During times of high unemployment, colleges often observe an increase in enrollment even if tuition remains unchanged. Why?
A. The opportunity cost of attending college is higher when unemployment is high. B. The benefit of attending college is lower because college graduates are less likely to find jobs. C. The opportunity cost of attending college is lower when unemployment is high. D. Students go to college even when the net benefit is negative.
In actual practice, short-term interest rates and long-term interest rates usually move together; this is the major shortcoming of the
A) segmented markets theory. B) expectations theory. C) liquidity premium theory. D) separable markets theory.
Suppose a nation has a total population of 100,000,000. Out of that, 60% are in the labor force and 55,000,000 people are employed. What is the nation's unemployment rate?
A) 5.0% B) 8.3% C) 9.1% D) 10.9%
The federal government decides to impose a 15% excise tax on luxury yachts. An economist would suggest that:
a. this is an effective way to indirectly tax the wealthy b. the tax incidence will fall largely on those who buy luxury yachts c. if prospective buyers decide to purchase other luxury goods instead, the tax incidence will largely fall on those who build and sell luxury yachts d. the price of luxury yachts will rise by 15%