Suppose the economy is initially experiencing a recessionary gap. A reduction in the size of the budget deficit will cause which of the following in the short run?
A. an increase in the size of the recessionary gap and decrease in real GDP.
B. a reduction in the size of the recessionary gap and increase in real GDP.
C. an inflationary gap.
D. an increase in inflation and increase in aggregate supply.
Answer: A
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Which statement is false?
A. The unemployment rate for blacks has consistently been double that of whites. B. The largest source of income is property income. C. Women have traditionally earned 60% of what men have earned. D. None of these statements are false.
Diminishing marginal utility implies:
A. as the consumption of a good increases marginal utility decreases. B. as the consumption of a good increases marginal utility increases. C. as the consumption of a good increases total utility decreases. D. as the consumption of a good increases total utility increases.
Which of the following statements is true about migration behavior?
A. Older workers are more likely to migrate than younger workers. B. Migrants are more likely to migrate to countries farther rather than nearer to their home country. C. Single workers are more likely to migrate than workers with spouses and children. D. Workers are less likely to migrate where "beaten paths" exist.
In Figure 32.1, at the supported price-quantity combination where production is limited, the producer surplus is 
A. APfloorB. B. HP*C. C. P*AC. D. HPfloorBG.