Which of the following may be used in an attempt to correct market failure?
A. Laws and regulations.
B. Government failure.
C. Laissez faire price policies.
D. The market mechanism.
Answer: A
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For an economy starting at full employment real GDP, an increase in autonomous expenditure results in a(n)
A. increase in full-employment output. B. decrease in full-employment output. C. recessionary output gap. D. inflationary output gap.
Refer to Table 4-8. Suppose that the quantity of labor demanded decreases by 40,000 at each wage level. What are the new free market equilibrium hourly wage and the new equilibrium quantity of labor?
A) W = $10.00; Q = 390,000 B) W = $8.50; Q = 340,000 C) W = $9.50; Q = 380,000 D) W = $8.00; Q = 350,000
A Certificate of Deposit would be counted in which measure of money?
A. M1 B. M2 C. Hard money D. It would be counted in both M1 and M2
If you observed that the both the wage rate and employment increased, which of the following would be a possible explanation?
a. A decrease in labor demand b. An increase in labor demand that outpaced an increase in labor supply c. A decrease in labor demand coupled with an increase in labor supply d. A decrease in labor supply e. An increase in labor supply that outpaced an increase in labor demand