If President Obama agrees with his economic advisers who advocate cutting the rate of unemployment to 3 percent and the rate of inflation to 2 percent, you know he
a. believes the Phillips curve represents his only options
b. believes in the rational expectations theory
c. is a Keynesian
d. is a neo-Keynesian
e. believes the Laffer curve has validity
D
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The United Auto Worker (UAW) would best be classified as
A) a craft union. B) an industrial union. C) a guild. D) closed shop union. E) none of the above.
Answer the following questions true (T) or false (F)
1. The sales revenue a seller receives from the sale of an additional unit of goods is called the marginal benefit. 2. Optimal decisions are made at the point where marginal cost equals zero. 3. If it costs Sinclair $300 to produce 3 suede jackets and $420 to produce 4 suede jackets, then the difference of $120 is the marginal cost of producing the 4th suede jacket.
One of the reasons the velocity of M1 has risen over the long-run is
A) increased economic uncertainty. B) growth in the money supply. C) new techniques of cash management by corporate treasurers. D) an increase in the demand for money.
Of the following examples, which would most likely be performed by an economist working for American Airlines?
A) using economic models to analyze unemployment and inflation rates in Australia B) assessing whether automobile injuries are directly related to speed limits C) analyzing data related to passenger air traffic in China D) forecasting the demand for U.S.-produced organic produce over the next 15 years