A factor that might have contributed to the weakening of the U.S. economy in 2007-2009 was
A. the impending expiration of the Bush Tax Cuts of 2003.
B. rising levels of federal government spending.
C. historically-low interest rates.
D. rapid growth of the money stock.
Answer: A
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A perfectly competitive firm shuts down if the price of its product is
A) greater than its minimum average variable cost. B) less than its minimum average variable cost. C) greater than its maximum variable cost. D) less than its minimum total cost.
When nations trade the result would most likely be:
A. increase in total production, which can benefit every nation involved. B. decrease in total production across nations but increases it for some. C. decrease in total production across all nations but benefits every nation because they are individually more productive. D. increase in total production, which would benefit only the wealthier nation.
change in quantity demanded
What will be an ideal response?
Consider a labor market with two sectors-a union sector and a non-union sector-with perfectly inelastic labor supply. The presence of the union sector causes all of the following results except:
A. fewer workers are hired in the union sector than those same firms would hire if there was no union sector. B. the nonunion wage is less than the competitive wage when there is no union sector. C. more workers are hired in the nonunion sector than those same firms would hire if there was no union sector. D. total surplus added between the union sector and the nonunion sector is the same as total surplus when there is no union sector. E. the union wage is greater than the competitive wage when there is no union sector.