An automatic stabilizer is a feature of the economy that
A. makes prices “sticky.”
B. reduces its sensitivity to shocks.
C. maximizes its volatility.
D. automatically reduces recessionary trends.
Answer: B
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The demand curve facing the monopolistically competitive firm is:
A. flat. B. vertical. C. U-shaped. D. None of these statements is true.
Table 9.4 represents 3 markets for used motorcycles. Which of the markets in Table 14.4 are NOT in equilibrium?
A. 1 only B. 2 only C. 3 only D. 1 and 3
Which of the following statements about the importance of trade to the U.S. economy is true?
A) Since 1950, both exports and imports have steadily decreased as a fraction of U.S. gross domestic product. B) Overall, about 80 percent of U.S. manufacturing jobs depend directly or indirectly on exports. C) The United States is the second largest exporter in the world. D) The U.S. economy is highly dependent on international trade for growth in its gross domestic product.
Refer to the given data. At the $100 level of income, the average propensity to save is:
A. .10.
B. .20.
C. .25.
D. .90.