Which of the following statements is true?
A) Marginal analysis is a key component in the process of optimization in levels.
B) In both the techniques of optimization, all costs have to be converted to the same unit of measurement.
C) Optimization in levels calculates the change in net benefits when a person switches from one alternative to another.
D) Only direct costs are considered when the net benefits of the alternatives are calculated.
B
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Which of the following does NOT occur when the economy is operating at the equilibrium level of GDP?
A) Total planned expenditures equal real GDP. B) Planned investment equals actual investment. C) Inventory investment equals zero. D) Real GDP tends to rise over time.
The national economic forecast for the next two years prepared by the staff of the Board of Governors is published in the
A) green book. B) beige book. C) blue book. D) Fed book.
If the number of people employed is 190 million and the number of people in the labor force is 200 million, then the unemployment rate is
A. 5%. B. 10%. C. 90%. D. 95%.
Which of the following is considered to be one of the more ill-advised public policies that has contributed to Africa's famine?
A. Maintenance of high prices for agricultural commodities B. Rejection of foreign aid and technical assistance C. Neglected investment of resources in agriculture D. Acceptance of foreign aid and technical assistance