The business cycle is the
a. relationship between unemployment and inflation.
b. irregular fluctuations in economic activity.
c. positive relationship between the quantity of money in an economy and inflation.
d. predictable changes in economic activity due to changes in government spending and taxes.
b
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Refer to Figure 8.2. As the competitive industry, not just the firm in question, moves toward long-run equilibrium, the firm will be forced to operate at what level of output?
A) 22 B) 34 C) 38. D) 50 E) 64
Most markets in the United States:
A. have some degree of competitiveness, but are not perfectly competitive. B. have very few competitive features and so are regulated by the government. C. are monopolies. D. are perfectly competitive.
Which one of the following will shift the investment curve in South Korea downward?
a. a series of major technological breakthroughs in South Korea b. lower tax rates in South Korea c. higher tax rates in South Korea d. tighter lending laws in South Korea e. a lower rate of capacity utilization in South Korea
An increase in real per capita income will generally lead to
a. a cleaner environment and more time for recreation. b. a reduction in life expectancy because working conditions are less desirable. c. an increase in the number of hours worked by residents. d. an increase in real GDP that is less rapid than the increase in population