Which of the following is an example of a positive economic statement?
A. The economy's real output increased at about 3 percent last year and the unemployment rate decreased.
B. A central bank should not print too much money because inflation could result.
C. Congress should stabilize the social security system by raising taxes now.
D. The government farm products surplus should be distributed to the needy.
Answer: A
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The first table above gives the labor demand and labor supply schedules for a nation. The second table gives its production function
a. What are the equilibrium real wage rate and the level of employment? b. What is potential GDP?
Refer to Figure 14-6 Use the decision tree to determine whether Pizza Hut should deter Domino's from entering the market for pasta salad. Assume that each firm must earn a 25% return on investment to break even. Explain Pizza Hut's decision process
What will be an ideal response?
Which of the following statements is not true with regard to repurchase agreements?
A) In a typical repo, an entity sells government securities and agrees to repurchase them at a higher price the next day. B) A reverse RP involves borrowing funds overnight. C) The repo market has evolved into maturities ranging from one day to three months. D) In practice, a repo is used to raise funds for anything the borrower chooses.
Which of the following would be expected if the tariff on foreign-produced automobiles was increased? a. The domestic price of automobiles would fall
b. The supply of foreign automobiles to the domestic market would be reduced, causing auto prices to rise. c. The number of unemployed workers in the domestic automobile industry would rise. d. The demand for foreign-produced automobiles would increase, causing the price of automobiles to increase in other nations.