The World Bank approach to combating child labor stresses
(a) making child labor legal under certain conditions.
(b) tackling the sources of poverty.
(c) encouraging families to migrate to richer countries.
(d) providing each child with a computer so that children have an alternative to working.
B
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The real business cycle theory holds that business fluctuations are caused by
A. "stop-and-go" monetary policies. B. factors affecting aggregate demand. C. significant changes in technology and resource availability. D. incorrectly anticipated government stabilization policies.
In a perfectly competitive market, situations of surplus or shortage of a good:
A) exist till the government or any ruling authority intervenes. B) are permanent phenomena. C) can exist simultaneously. D) are self-corrected due to the competitive nature of the market.
An open-market operation refers to
A) changing the money supply by changing taxes. B) changing the money supply by changing government spending. C) an exchange of money for interest-bearing debt by the monetary authority. D) an exchange of domestic money for foreign money by the monetary authority.
A firm is producing 10,000 units of output in two plants, A and B, and each plant is producing 5,000 units of output. The marginal cost in plant A is $10 and the marginal cost in B is $6. To reduce the cost of producing 10,000 units the firm should
A. produce less in A and more in B. B. produce more in A and less in B. C. do nothing since the output in each plant is equal. D. produce it all in B because B is the lower cost plant.