The FE line is vertical because the level of output at full employment doesn't depend on the
A. marginal product of labor.
B. real interest rate.
C. real wage rate.
D. level of employment.
Answer: B
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All of the following describe the conflict between divisions EXCEPT
a. some activities across divisions benefit from coordination b. managers of profit centers care too little about the effects of their decisions on other divisions c. corporate executives reward managers who are able to become more efficient d. corporate executives cannot tell when one divisional manager's decision is appropriate or not
If natural resources had become scarcer, then we would expect their
a. prices to have risen more than inflation as they have. b. prices to have risen more than inflation, but they have not. c. known quantities to have fallen as they have. d. known quantities to have fallen but they have not.
A 1977 amendment to the Federal Reserve Act of 1913
a. requires the Federal Reserve to place more weight on promoting price stability than on promoting maximum employment. b. requires the Federal Reserve to place more weight on promoting maximum employment than on promoting price stability. c. requires the Federal Reserve to place equal weight on promoting price stability and maximum employment. d. says the Federal Reserve should promote price stability and maximum employment, but does not specify how the Federal Reserve should weight these goals.
Which of the following is not an example of an intermediate good?
A. an oven bought by a homeowner B. gasoline bought by a trucking company C. flour bought by a bakery D. office supplies bought by an accounting firm