Answering the For Whom to Produce question means that:
A. society is determining the size of the economic pie,
B. scarcity no longer restricts production.
C. society must have a method to decide who will be rich and who will be poor.
D. an economy is selecting among its resources for production.
Answer: C
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In September, buyers of silver expect that the price of silver will rise in October. What happens in the silver market in September, holding all else constant?
A) The demand curve shifts to the right. B) The quantity demanded increases. C) The quantity demanded decreases. D) The demand curve shifts to the left.
If the Fed were required to maintain an absolutely constant growth rate of high-powered money, then the growth rate of the money supply
A) would be zero. B) would be constant at the growth rate of H. C) would be constant but not necessarily at the growth rate of H. D) would fluctuate along with the parameters in the money-creation formula.
Assume that all taxes are lump-sum, net exports = 0, and the marginal propensity to consume is 0.8. Then, if investment and taxes were each to fall by $100 million, the equilibrium level of income would
A) rise by $100 million. B) fall by $100 million. C) rise by $500 million. D) fall by $500 million.
Structural unemployment
a. arises from a mismatch between available jobs and workers' skills or geographic location b. is short-term joblessness experienced by those re-entering the labor force after a long absence c. occurs because of changes in seasons, tourist patterns, and similar factors d. does not occur when the economy is at full employment e. is joblessness resulting from business cycle movements