If a nation has depression-level employment, it is in the:
a. Intermediate range of the aggregate supply curve.
b. Twilight zone of the aggregate supply curve.
c. Keynesian range of the aggregate supply curve.
d. Classical range of the aggregate supply curve.
e. The Gibson-Paradox range of the aggregate supply curve.
.C
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Consumers ________ from a tariff because they pay a ________ price to producers so they purchase a ________ quantity of the good
A) lose; lower; smaller B) win; lower; larger C) win; higher; smaller D) lose; higher; smaller E) lose; higher; larger
If the elasticity of demand for cigarettes is 0.4, then an increase in the price of a pack of cigarettes from $5.00 to $6.00 would reduce quantities demanded by about
A. 7 percent. B. 40 percent. C. 42 percent. D. 220 percent.
In the Keynesian money market, velocity is
a. negatively related to the interest rate. b. independent of the interest rate. c. positively related to the interest rate. d. is positively related to the money supply. e. is not related to the interest rate but income.
If the U.S. can produce pizza for $5 each and barrels of beer for $25 each, and Germany can produce pizza for $7 each and barrels of beer for $21 each, then
A) each country will produce both pizza and beer. B) the U.S. will produce beer and trade with Germany for pizza. C) the U.S. will produce pizza and trade with Germany for beer. D) All of the above.