Answer the following statements true (T) or false (F)
1. Government intervention in the U.S. economy includes legislation such as antitrust laws, labor laws, and safety regulations.
2. Full employment is considered to have been achieved only when everybody in the economy has a job.
3. An economic growth rate of 3 percent would be considered unhealthy for the U.S. economy.
4. A stable unemployment rate requires that the U.S. economy grow each year in order to absorb new workers who enter the labor force.
1. TRUE
2. FALSE
3. FALSE
4. TRUE
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If Sail Away Cruises offers customers a free cruise ticket with each full priced cruise ticket purchased, this is an example of ________.
A) zero-degree price discrimination B) first-degree price discrimination C) third-degree price discrimination D) second-degree price discrimination
Use the following general linear demand relation:Qd = 680 - 9P + 0.006M - 4PRwhere M is income and PR is the price of a related good, R. If M = $15,000 and PR = $20 and the supply function is Qs = 30 + 3P , then, when the price of the good is $60,
A. there is equilibrium in the market. B. there is a shortage of 60 units of the good. C. there is a surplus of 60 units of the good. D. the quantities demanded and supplied are indeterminate.
If government spending and taxes decrease by the same amount,
A) the IS curve does not shift. B) the IS curve shift leftward. C) the IS curve shifts rightward. D) the LM curve shifts downward.
When government intervenes in the production process because external costs exist, it typically attempts to shift the industry's
A. supply curve to the left. B. demand curve to the right. C. demand curve to the left. D. supply curve to the right.