If Dana can paint his house faster than Luke, a professional house painter, then:
A. Dana has a comparative advantage in house painting.
B. Dana has an absolute advantage in house painting.
C. Luke has a comparative advantage in house painting.
D. Luke has an absolute advantage in house painting.
Answer: B
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If MPC = 0.8, a $200 billion increase in government purchases would have what size effect on the "first round" of induced added consumption?
a. $80 billion b. $160 billion c. $200 billion d. $800 billion
Arlo has just completed a study that shows a large number of workers are not doing the jobs that best use their talents. Which point on the production possibilities curve represents this fact?
a. A
b. B
c. C
d. D
All of the following are considered to be unemployed EXCEPT
A. new job entrants. B. job leavers. C. job reentrants. D. discouraged workers.
An inflation rate above the target rate will result in:
A. a movement up along the monetary policy reaction curve and a rightward shift of the dynamic aggregate demand curve. B. a movement up along the monetary policy reaction curve and a leftward shift of the dynamic aggregate demand curve. C. a movement up along the monetary policy reaction curve and a movement up the dynamic aggregate demand curve. D. a movement down along the monetary policy reaction curve and a movement down the dynamic aggregate demand curve.