If a product becomes more popular and consumers want more produced, which of the following best describes what happens to move more factors of production into that industry?
A) An agency of the Federal government directs the movement of factors.
B) The chief executive officers or presidents of corporations require that factors leave one industry and move to the other industry.
C) Factor owners voluntarily move their factors because they want to satisfy the interests of consumers.
D) Wages, rent, interest, and profit increase in that industry, thereby giving factors the incentive to move to that industry.
E) Consumers increase their demand for the products and, as a result, the taxes the producers must pay decrease enabling the producers to hire more factors of production.
D
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Market failure can result from market outcomes that:
a. result in too few resources devoted to a good. b. result in too many resources devoted to a good. c. may justify government intervention. d. all of these.
In order to be classified as unemployed, a person must be not working,
A) have been actively looking for work within the past four weeks, and currently be available for work. B) and currently be available for work, regardless of whether one is actively looking for work or not. C) and be waiting to be called back to work from a temporary layoff. D) and actively looking for work within the past year. E) ?a or c
What is the real (adjusted for inflation) present value of $104.25 that you could receive one year from now, given that the rate of interest is 4.25 percent and the anticipated rate of inflation is 1 percent?
A. $100.00 B. $100.97 C. $107.64 D. $99.05
Suppose that the equilibrium nominal interest rate is 4 percent and the equilibrium quantity of money is $1 trillion. At any interest rate above 4 percent,
A) less than $1 trillion will be demanded and bond prices will fall. B) more than $1 trillion will be supplied and bond prices will fall. C) there is a shortage of money and the interest rate will rise. D) more than $1 trillion will be supplied and the interest rate will rise. E) less than $1 trillion will be demanded and bond prices will increase.