If demand is inelastic, marginal revenue will be
a. positive.
b. zero.
c. negative.
d. constant.
c
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The higher the real wage rate, the higher the labor force participation rate
Indicate whether the statement is true or false
The income tax system serves as an automatic stabilizer over the course of the business cycle
Indicate whether the statement is true or false
Trade restrictions are often motivated by a desire to save domestic jobs threatened by competition from imports. Which of the following counter-arguments is made by economists who oppose trade restrictions?
A) Trade restrictions benefit consumers in the short run but not in the long run. B) Statistics show that trade restrictions actually do not save jobs. C) Consumers pay a high cost for jobs saved through trade restrictions. D) Trade restrictions have a limited impact because most Americans prefer domestic goods over imports.
Because policies in the United States were too expansionary from 1965 through 1973, the U.S. suffered
A) demand-pull inflation. B) cost-push inflation, as workers sought higher wages in order to keep up with inflation. C) both demand-pull and cost-push inflation. D) neither demand-pull nor cost-push inflation.