Which of the following is a factor of production?
A) a sofa produced by a furniture manufacturer
B) 20 shares of Microsoft stock
C) the janitor at the local elementary school
D) $500 in cash
Answer: C
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Prescott's calibrated RBC model showed that the actual and simulated ________ of five key macroeconomic variables were very close
A) magnitudes B) slopes C) volatilities D) betas
One of the reasons that communism failed in the Soviet Union is that, under communism:
a. no one had property rights, so there was little incentive to use resources efficiently. b. there were high rates of unemployment and homelessness accompanied by a high rate of inflation. c. planners did not have all the information necessary to make efficient decisions. d. there was a high degree of political freedom. e. there was a high degree of economic freedom.
The stocks that make up the Dow Jones Industrial Average:
A. are dominated by the automobile industry. B. are not a broad measure of the market since they do not include any technology companies. C. have changed as the structure of the economy has changed. D. are the same ones that were originally used to construct the index.
Which question is an example of a microeconomic question?
A. What should the Federal government do to reduce the trade deficit with Japan? B. Will the merger of two airlines likely lead to higher cost of air travel in the economy? C. What factors are contributing to the steep rise in the federal government's total debt? D. Will the inflation rate remain relatively stable this year?