The figure below illustrates the impact of an export subsidy as imposed by a large country. No imports are permitted.
The consumption effect of the export subsidy is shown by area(s)
A. (d + i + j).
B. b.
C. (b + f + g).
D. d.
Answer: B
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The presence of discouraged workers
A. may cause the official unemployment rate to understate the true amount of unemployment. B. reduces the size of the labor force but does not affect the unemployment rate. C. may cause the official unemployment rate to overstate the true amount of unemployment. D. increases the size of the labor force but does not affect the unemployment rate.
In consumer equilibrium, Harold consumes pizza, sodas, and other goods. Pizza and soda are complements for Harold. The price of a pizza rises while his income remains the same. Harold then consumes
A) more pizza and less soda. B) more pizza and more soda. C) less pizza and less soda. D) less pizza and more soda.
Torrie is thinking of starting up a small business selling hand-painted wine glasses. She is considering setting up her business as a sole proprietorship. What is one advantage to Torrie of setting up her business as a sole proprietorship?
A) As a sole proprietor, Torrie would have the ability to share risk with shareholders. B) As a sole proprietor, Torrie would face limited liability. C) As a sole proprietor, Torrie would have both ownership and control over the business. D) All of the above would be advantages of setting up her business as a sole proprietorship.
According to the ________, if Carla has many of the characteristics of a stereotypical basketball player (for example, she is tall), then people will be more likely to assume she plays basketball.
A. representative heuristic B. availability heuristic C. adaptive rationality standard D. Weber-Fechner law