"If the Federal Reserve raises interest rates, demand for housing is likely to fall" is a ________ statement about ________ policy.
A. normative; monetary
B. positive; monetary
C. normative; fiscal
D. positive; fiscal
Answer: B
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International trade decreases the demand for workers in domestic industries that
A) produce goods that are exported from the country. B) produce the goods in which the nation has a comparative advantage. C) help businesses import and export. D) produce goods that also are imported into the country. E) service imported goods.
In the Cobb-Douglas production function Y = AK3/4L1/4,
A) capital is a more expensive input than labor. B) capital is more plentiful than labor. C) diminishing returns to capital are three times greater than are diminishing returns to labor. D) capital has a larger share in national income than does labor.
Interindustry competition means that:
A. in oligopolistic industries a few large firms compete with one another in bidding down product price. B. in some markets the producers of a particular product might face competition from products produced by other industries. C. firms that sell a product at one stage of production are faced with firms that buy the product at the next stage of production. D. in most industries there are usually a number of firms producing identical products.
Which of the following is an example of limit pricing?
A. In order to buy Microsoft Windows, you must also purchase Internet Explorer. B. Bus rides are cheaper for senior citizens than for other people. C. Prices are set low enough to drive other firms out of a market. D. Prices are set low enough to prevent other firms from entering the market.