Explain what a macroeconomic shock is, and give three examples of macroeconomic shocks to the U.S. economy in the past 10 years
What will be an ideal response?
A macroeconomic shock is an unexpected exogenous event that has a significant effect on an important sector of the economy or on the economy as a whole. Examples in the U.S. economy include, the housing bubble in 2006, the financial crisis of 2008, and the unexpected increase in oil prices in 2010-2011.
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Refer to the figure above. Calculate the total surplus in Lithasia under free trade
A) $150 B) $250 C) $325 D) $375
Earmarked taxes _____
a. are taxes whose revenues are dedicated to a particular program b. are taxes whose revenue is given to a specific group c. are income taxes that minimize the decline in labor supply d. are taxes that go into the general fund
The decision to enter or exit an industry is known as the
A. Production decision. B. Profit maximization decision. C. Investment decision. D. Output decision.
Jose owns his own business. The first three employees can create 10, 12, and 11 widgets per hour. When Jose hires the 4th worker the total production from all employees increased to 40 total widgets per hour. What was the marginal product of the 4th worker?
A. 13 widgets B. 10 widgets C. 33 widgets D. 7 widgets