Which of the following is a short-run adjustment?
A. A local bakery hires two additional bakers.
B. Six new firms enter the plastics industry.
C. The number of farms in the United States declines by 5 percent.
D. BMW constructs a new assembly plant in South Carolina.
Answer: A
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Labor resources include:
a. skilled workers but not unskilled workers. b. unskilled workers but not skilled workers. c. a robot. d. education and training of workers. e. coffee breaks.
Which of the following factors leads to a drastic rise in the price of assets?
a. Increased supply of assets b. Increase in the market rate of interest c. Reduced demand for money d. Increased liquidity in the economy e. Contractionary monetary and fiscal policies being undertaken by the government
Ed thinks he looks good in tweed. Last week he saw a light-brown tweed sports coat at Dessen's Fine Clothing Store and thought that the $200 price tag was about as much as he was willing to pay. Lucky for him, he noticed an ad in the local paper that night that had attached a $20-off coupon for any purchase at Dessen's over $100 . Using the coupon, he bought the coat. He ended up with the coat
and a a. producer surplus of $80 b. producer surplus of $20 c. consumer surplus of $120 d. consumer surplus of $80 e. consumer surplus of $20
The major factor distinguishing M1 from M2 is:
a. Legal tender status. b. Liquidity. c. Whether or not the financial asset is backed by gold, silver, or some other precious metal. d. Whether or not the financial asset can be turned into a precious metal quickly and without substantial loss of value. e. All of the above are important distinguishing factors.