The only policy lever that is effective against unemployment when the AS curve is vertical is
A. Fiscal policy.
B. Monetary policy.
C. Laissez faire policy.
D. Supply-side policy.
Answer: D
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Suppose each worker must use only one shovel to dig a trench, and shovels are useless by themselves. In the short run, an increase in the price of shovels will result in
A) fewer shovels being purchased. B) more workers being hired. C) a decrease in the firm's output. D) no change in the firm's output.
The midpoint quantity between 100 and 300 units is
a. 100 units b. 200 units c. 300 units d. 150 units e. 20,000 units
Because the United States purchases more cars, stereos, and other goods from Japan than Japan purchases from the United States, it is often said that the United States has a "trade deficit" with Japan. Does this mean that the U.S. balance of payments is running a deficit? How would you more accurately characterize the effect that trade with Japan has on the balance of payments?
Which of the following is an example of an indirect tax?
A. Value-added tax B. Income tax C. Inheritance tax D. Head tax