Figure 10-5
In Figure 10-5, which graph best illustrates the situation of an economy near full employment that experiences an increase in autonomous consumer spending?
A. (1)
B. (2)
C. (3)
D. (4)
Answer: B
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At relatively low wage rates the ____________ outweighs the ____________.
A. income effect; substitution effect B. substitution effect; income effect C. marginal revenue product; resource demand D. None of these choices are correct.
Regarding central bank independence
A) the Fed is more independent than the European Central Bank. B) the European Central Bank is more independent than the Fed. C) the trend in industrialized nations has been to reduce central bank independence. D) the Bank of England has the longest tradition of independence of any central bank in the world.
An argument supporting promotion of the urban informal sector is
(a) the formal sector is incapable of providing enough employment. (b) informal sector workers are poorly educated. (c) it uses a relatively high capital intensity. (d) it would reduce urban bias.
A natural monopoly has no incentive to limit its costs of production under which type of regulation?
A. Social regulation. B. Output regulation. C. Profit regulation. D. Price regulation.