The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment.
B. exogenous spending.
C. recessionary gaps.
D. expansionary gaps.
Answer: D
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According to the book, four disciplines are particularly applicable to management. Which of the following was not listed as a main influence?
a. Humanities b. Psychology c. Sociology d. Economics
An O. Henry short story tells about a young married couple, quite poor, facing Christmas without the means to buy each other gifts. So without her knowing, he sells his watch to buy a comb for her lovely hair and at the same time without him knowing, she cuts her lovely hair and sells it to buy a fob for his watch. To an economist, this touching story tells us
a. that without complete and open information, utility cannot be maximized b. total utility is not always greater than marginal utility c. the law of diminishing marginal utility does not apply in all cases d. the marginal utility of the comb for her was greater than the marginal utility of his watch and for him, the marginal utility of the fob was less than the marginal utility ofthe comb e. the marginal utility of the comb for him was greater than the marginal utility of his watch and for her, the marginal utility of her hair was less than the marginal utility ofthe fob
Which of the following is NOT correct about the effects of a tariff on an imported product?
A) Tariffs benefit domestic producers by raising price and domestic output. B) Tariffs increase government revenue. C) Tariffs mean higher prices and less consumption for consumers of the product. D) Tariffs increase the efficiency of how resources are allocated.
Which of the following equations represents equilibrium in the goods market?
A. AE = C + I + G B. Y = AD + AS C. Y = S + I D. AE = I(r)