In a closed economy, each unit of output is either consumed by households or invested
a. True
b. False
Indicate whether the statement is true or false
False
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How do economic growth rates affect a nation's standard of living?
What will be an ideal response?
Based on Figure 6.1, given a tariff of $0.25 per bushel on soybean imports, how much will domestic production increase?
A) Domestic firms will increase output by 10 million bushels. B) Domestic firms will increase output by 20 million bushels. C) Domestic firms will increase output by 70 million bushels. D) Domestic firms' production will not be changed by the tariff.
On October 6, 1979, the Federal Reserve abandoned the strategy of targeting the Federal funds rate and focused on target ranges for growth in the monetary aggregates. Since that time, the Federal Reserve
a. has never deviated from that strategy. b. gave up on interest rate targeting. c. deviated from target ranges for growth in the monetary aggregates when inflation and unemployment were high. d. None of the above
An improvement in technology that allows workers to process twice as many insurance forms in an hour than before will cause
a. more labor to be employed because its marginal revenue product has fallen. b. an increase in insurance premiums. c. fewer workers to be employed because their marginal revenue product has decreased. d. more workers to be employed because their marginal revenue product has increased. e. fewer workers to be employed because their marginal revenue product has increased.