The LM curve illustrates that when income increases, the
A) price level must increase to clear the asset market.
B) real interest rate on nonmonetary assets must increase to clear the asset market.
C) price level must increase to clear the goods market.
D) real interest rate on nonmonetary assets must increase to clear the goods market.
B
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Gross national product (GNP) of the United States is the value of all final goods and services
A) produced anywhere in the world by residents of the United States. B) produced in the United States by residents of any nation. C) produced and consumed within the United States. D) produced anywhere in the world, but consumed by residents of the United States.
The more elastic the demand for a good,
a. the more of an excise tax is that is collected by sellers b. the more of an excise tax that is paid by buyers c. the more an excise that is paid by sellers d. the more elastic the supply of that good e. the smaller the burden of a tax on that good
The minimum wage has its greatest impact on the market for
a. female labor. b. older labor. c. black labor. d. teenage labor.
Suppose that in an hour you can either make 20 tortillas or word-process 5 pages of text, while in an hour your roommate can either make 15 tortillas or word-process 15 pages of text. Which of the following is correct?
a. Your comparative advantage is in making tortillas. b. Your roommate's comparative advantage is making tortillas. c. Your roommate has an absolute advantage in both tasks. d. You have an absolute advantage in both tasks.