Which of the following goods will least likely suffer a decline in demand during a recession?
A. Dinner at a nice restaurant
B. iPods
C. Toothpaste
D. Plasma screen and LCD TVs
Answer: C
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An unregulated market economy provides material wealth, but does not generate effective control of environmental damage
a. True b. False Indicate whether the statement is true or false
Which of the following will be increased during a contractionary monetary policy?
a. money supply b. the return to saving c. borrowing d. spending
Which type of unemployment leads to a natural rate of unemployment above zero?
A. Frictional unemployment B. Cyclical unemployment C. The natural rate of unemployment is always zero. D. Unemployment of government workers
The increase in spending that occurs because domestic goods become cheaper relative to foreign goods when the price level falls is known as the:
A. interest rate effect. B. international trade effect. C. price effect. D. wealth effect.