Holding other things constant, increases in the price level in the US will
a. Cause the dollar to appreciate
b. Cause the dollar to depreciate
c. Does not affect the dollar value
d. None of the above
b
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The process by which individuals limit their productive efforts to a particular activity instead of trying to produce directly everything that they need is known as
a. specialization. b. using absolute advantage. c. using exchange. d. scarcity.
Risk aversion implies that
A) individuals will not take on risk. B) investors must be compensated for about half of the risk they take on. C) investors must be compensated for the risk they take on. D) None of the above.
The fact that wage differentials continue to exist across different groups of workers leads economists to believe that
a. discrimination by customers is the most common type of economic discrimination. b. differences in human capital and job characteristics must be important in explaining the differences in wages. c. firms apparently are not profit maximizers. d. the market has failed to properly allocate wages to different workers.
In the classical model, the aggregate supply curve is
A. the same as the aggregate supply curve in the Keynesian model. B. flat at low levels of output and then eventually slopes upward as output increases. C. upward sloping in the short run but vertical in the long run. D. always vertical.