An example of an external force in business fluctuations is
a. falling interest rates due to lagging demand in a contraction.
b. a devaluation in the nation’s currency.
c. variations in inventories.
d. the lag between price changes and cost changes.
b. a devaluation in the nation’s currency.
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Refer to the above figure. The figure represents the saving function for the consumer. Point B represents
A) the amount of autonomous consumption. B) the point at which saving equals zero. C) a situation in which saving is negative. D) a situation in which saving is positive.
In the above figure, if the minimum wage is set at $6 per hour, what quantity of labor is employed?
A) 100 million hours B) 200 million hours C) 300 million hours D) 400 million hours
In order for spot checks to be effective, they must be:
A. rarely if ever done. B. partaken twice daily. C. performed at regular intervals. D. random in nature.
For a monopolistically competitive market, the number of firms in the market implies that
A. each firm faces a perfectly elastic demand. B. all firms will make losses. C. firms will collude to set monopoly price and output. D. each firm acts independently of other firms.