A sharp increase in the price of beef that causes consumers to switch to chicken is predicted to ________ the real wage and ________ employment of unskilled workers in a poultry processing plant.
A. increase; increase
B. increase; not change
C. increase; decrease
D. decrease; decrease
Answer: A
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If companies decrease investment spending because of lower expected returns on projects, forecasters should anticipate (everything else the same) that
A) GDP will rise. B) the money supply will fall. C) interest rates will fall. D) saving will increase.
A natural monopoly exists when
a. economies of scale are negligible b. there are a few dominant firms that corner the market c. one firm can produce the market output at lower average cost than two or more firms can d. barriers to entry are low e. only a few firms can minimize cost and maximize profit
The argument of Keynesian macroeconomic policy is that ______________ need(s) to spend when times are hard and save when times are good for the sake of the overall economy.
a. individuals b. the government c. states d. companies
Suppose that you are a broker and people tell you the following about themselves. What sort of bond would you recommend to each? Defend your choices
a. "I am in a high federal income tax bracket and I don't want to take very much risk." b. "I want a high return and I am willing to take a lot of risk to get it." c. "I want a decent return and I have enough deductions that I don't value tax breaks highly."