The statement that "the unemployment rate will increase as the economy moves into a recession" is an example of:
A. a generalization.
B. a microeconomic statement.
C. marginal analysis.
D. a normative statement.
Answer: A
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The implementation lag is
A) the time it takes for policy makers to obtain data indicating what is happening in the economy. B) the time it takes for policy makers to be sure of what the data are signaling about the future course of the economy. C) the time it takes to pass legislation to implement a particular policy. D) the time it takes for policy makers to change policy instruments once they have decided on the new policy. E) the time it takes for the policy actually to have an impact on the economy.
In implementing the Marshall Plan (1948–51),
(a) the United States discouraged European countries from cooperating among themselves to increase trade, as it was felt that economic recovery would be better achieved through competition. (b) the United States, in order to offset the large capital outflow caused by loans and grants made abroad, tried to maintain a balance of payments surplus. (c) the United States offered financial aid to many of the economies in Western Europe devastated by World War II. (d) the U.S. dollar was devalued 30% against other world currencies.
Employers may choose to pay their workers a wage that exceeds the equilibrium wage according to
a. efficiency-wage theories. b. equilibrium wage theories. c. screening theories. d. signaling theories.
Other things the same, the real exchange rate between American and French goods would be lower if
a. prices of French goods were higher, or the number of euros a dollar purchased was higher. b. prices of French goods were higher, or the number of euros a dollar purchased was lower. c. prices of French goods were lower, or the number of euros a dollar purchased was higher. d. prices of French goods were lower, or the number of euros a dollar purchased was lower.