In this graph, what causes point A to move to point B?
a. a decrease in interest rates in the short run
b. an increase in interest rates in the short run
c. a decrease in interest rates in the long run
d. an increase in interest rates in the long run
a. a decrease in interest rates in the short run
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Profits resulting from luck can be distinguished from profits attributable to shrewd predictions by
A) calculating the opportunity cost of earning the profits. B) comparing the profits with interest rates. C) finding out whether they lead to reduced revenue or increased costs. D) no known empirical test. E) whether or not they were generally anticipated.
Which of the following transactions would be included in the official calculation of GDP?
A) You wash and wax your father's car as a favor to him. B) You illegally download music off the Internet to put on your new iPod. C) You buy a new iPod. D) A student buys a used textbook at the bookstore. E) Firestone sells $2 million worth of tires to General Motors.
Which of the following offers an example of structural unemployment?
A. The rise in unemployment for stable workers after the development of gasoline-powered automobiles and the resulting long-term decline in horse-and- buggy transportation. B. The rise in unemployment among farm workers after harvest. C. The unemployment associated with workers changing jobs. D. The increase in unemployment during recessions.
A primary purpose of tradable pollution permits is to
A. Completely eliminate pollution. B. Eliminate private costs. C. Increase the level of pollution to optimal levels. D. Reduce the cost of pollution control.