If a hurricane were to wipe out the majority of the eastern seaboard in the United States, it would likely cause a:
A. short-run supply shock.
B. long-run supply shock.
C. long-run demand shock.
D. short-run demand shock.
Answer: B
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Which of the following would an economist classify as capital?
a. 100 shares of Microsoft stock b. a $50 bill c. a credit card d. a lawyer's personal computer e. a bauxite mine in Jamaica
Suppose the only two goods that Charlie consumes are wine and cheese. When wine sells for $10 a bottle and cheese sell for $10 a pound, he buys 6 bottles of wine and 4 pounds of cheese — spending his entire income of $100 . One day the price of wine falls to $5 a bottle and the price of cheese increases to $20 a pound, while his income does not change. The bundle of wine and cheese that he
purchased at the old prices now costs a. the same amount at the new prices. b. less than Charlie's income at the new prices. c. more than Charlie's income at the new prices. d. We do not have enough information to answer the question.
Which of the following is a requirement for the Bureau of Labor Statistics to place someone in the "unemployed" category?
a. The person must have worked no more than 10 hours during the past week.. b. The person must have tried to find employment during the previous four weeks. c. The person may not have been laid off. d. All of the above are correct.
The interest rate that the Fed charges banks that borrow reserves from it is the
a. federal funds rate. b. discount rate. c. reserve requirement. d. prime rate.