If the price of peanuts increases by 10 percent and the price of potato chips does not change, then the relative price of peanuts with respect to potato chips will ________ and the relative price of potato chips with respect to peanuts will ________
A) rise; rise
B) rise; fall
C) fall; rise
D) fall; fall
B
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From 1948 to 2011, the average unemployment rate in the United States was approximately
A) 9.6 percent. B) 24.4 percent. C) 5.8 percent. D) 12.0 percent. E) 3.1 percent.
A minimum wage increases unemployment by
A) increasing the quantity of labor demanded. B) decreasing the quantity of labor demanded. C) shifting only the labor supply curve rightward. D) shifting only the labor demand curve leftward. E) shifting the labor supply curve rightward and shifting the labor demand curve leftward.
The most important goal of the firm is to
A) maximize its revenues. B) maximize its sales volume. C) maximize its profits. D) minimize its costs.
Although the Fed professed employment of a monetary aggregate targeting strategy during the 1970s, its behavior suggests that it emphasized
A) free-reserve targeting. B) interest-rate targeting. C) a real-bills doctrine. D) price-index targeting.