The aggregate demand curve is
A. vertical if full employment exists.
B. horizontal when there is considerable unemployment in the economy.
C. downward sloping because of the interest rate, wealth or real balances, and foreign-purchases effects.
D. downward sloping because production costs decrease as real domestic output increases.
C. downward sloping because of the interest rate, wealth or real balances, and foreign-purchases effects.
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Which of the following is not classified as a capital input?
a. A John Deere factory. b. A Hewlett-Packard laser printer. c. A cement mixer. d. 500 shares of General Motors stock.
All of the following would be potential problems if developing nations around the world emphasized export promotion EXCEPT
A) industrial nations may be unable to absorb the exports of many newly industrializing nations. B) it would be much harder to emphasize exports under the WTO framework if the emphasis in exports requires some kind of subsidies. C) export growth may not add to GDP if it crowds out growth in output of goods for domestic consumption. D) export promotion by many countries may lead to economic conflicts. E) current research has clearly established that there is no causal connection between exports and faster economic growth.
Real-wage unemployment can be caused by which of the following?
A. Minimum wage laws B. Retraining programs C. Low-interest student loans D. None of these cause real-wage unemployment.
There are only two people in the world (Adam and Eve) and only one good (apples). Adam has four apples and a total utility in money terms from apple consumption of $16; Eve has four apples and a total utility from apple consumption of $20. Which of the following statements must be true?
A. Eve’s marginal utility from consuming her fourth apple must be greater than Adam’s marginal utility from consuming his fourth apple. B. The total utility of society will rise if Adam gives Eve one apple. C. If Adam and Eve each always has a positive marginal utility from consuming apples, the total utility of society can only be increased by an increase in the total number of apples available for consumption. D. Adam’s average utility from consuming apples is greater than Eve’s average utility from consuming apples.