Which of the following is a macroeconomic policy?
A. Requiring locks on all guns.
B. Tax cuts to bring the federal budget into balance
C. Regulations limiting automobile emissions.
D. How an early freeze in California will affect the price of fruit.
Answer: B
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When a natural monopoly is regulated using an average cost pricing rule, what can you say about the firm's profit and the market's efficiency?
What will be an ideal response?
An example of negative productivity shocks that could cause recessions is
a. a hurricane, which destroys capital. b. a decrease in the price of oil. c. reductions in defense spending. d. all of the above. e. both a and b.
Some economists argue that Okun's Law overstates the cost of cyclical unemployment because
A. the cost of retraining workers must be offset against the loss in output that occurs when workers are unemployed. B. it ignores the fact that leisure increases during a recession. C. if efficiency wages prevail, and workers are paid their real wage, already employed workers will reduce their effort, reducing output. D. it ignores the loss of government revenue and additional government expenditures that occur when unemployment rises.
When individual supply curves shift, ceteris paribus, the market supply curve shifts.
Answer the following statement true (T) or false (F)