People in an open economy who wish to invest can either:
A. invest at home or abroad.
B. buy stocks or bonds.
C. invest in private companies or public companies.
D. buy financial assets or durable goods.
Answer: A
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If the graph shown is displaying a competitive labor market:
A. D would represent the workers' demand for jobs at each wage.
B. S would represent the firm's supply of jobs at each wage.
C. P* would represent the equilibrium wage.
D. Q* would represent the most employment possible for the market.
The simultaneous occurrence of high inflation and high unemployment is called
A. Reflation. B. Stagflation. C. Depression. D. Deflation.
Refer to the graph shown. From 1929 to 1933 the money supply fell in the United States by 40 percent. The effect of this on the AD curve is best shown by a movement from:
A. A to B. B. A to C. C. A to D. D. B to A.
The cost of a one-unit increase in an activity is called the
A) rational cost. B) opportunity benefit. C) marginal cost. D) marginal benefit. E) margin.