Suppose your community is considering using public money to build a new sports stadium for the team that is already in the community and unlikely to ever leave. Suppose you are watching a news broadcast in which the supporters are saying that it will enhance economic activity because of the increase in restaurant activity that will occur around the new stadium. Now suppose you hear that an independent economist is going to appear during the next segment. It is likely she will say
A. there will be no new jobs created.
B. there will be no new jobs created in net because there will be about the same number of restaurant jobs lost near the old stadium as gained near the new one.
C. the jobs created in the area will make it worth the investment.
D. it may be a short-term cost, but in the long term, it will be worthwhile.
Answer: B
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The decline of the full-service wholesale houses CANNOT be traced to
a. competition from the marketing departments of large manufacturers. b. many industries adopting the "continuous process" manufacturing. c. the rise of brand identity. d. All of the above are correct. e. Only a and c are correct.
During a particular year, nominal wages increased by 4 percent but real wages declined by 2 percent. This implies that the price level increased by 6 percent
a. True b. False Indicate whether the statement is true or false
If nominal GDP rises from $5 billion to $6 billion, when the GDP deflator goes from 100 to 110, real GDP a. rises
b. falls. c. stays the same. d. could either be rising or falling.
The price charged by an oligopolist who has a kinked demand curve would be _______ than the price charged by a perfect competitor.
Fill in the blank(s) with the appropriate word(s).