The crowding of women and minorities into a restricted number of occupations:
A. has no impact on the size of the domestic output or its distribution in the long run.
B. will increase the size of the domestic output and make its distribution more equal.
C. will decrease the size of the domestic output and make its distribution less equal.
D. will increase the size of the domestic output but make its distribution less equal.
Answer: C
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Agraria specializes in the production of cotton. However, cotton manufacturers in Agraria are expecting the demand for its exports to fall sharply due to growing competition from a neighboring country
Assuming all else equal, which of the following is likely to happen in this case? A) The equilibrium unemployment in Agraria will fall. B) The equilibrium real wage in Agraria will rise. C) Investment expenditure in Agraria will rise. D) Consumption expenditure in Agraria will fall.
Comparing the situation of a nominal interest rate of 10 percent and an inflation rate of 9 percent with a nominal interest rate of 6 percent and inflation rate of 2 percent, consumers would borrow more in which situation?
A) Nominal interest rate of 10 percent since real interest rate is 1 percent. B) Nominal interest rate of 6 percent since the real interest rate is 4 percent. C) Nominal interest rate of 10 percent since the real interest rate is 9 percent. D) Nominal interest rate of 6 percent since the real interest rate is 2 percent.
Foreign exchange rates tend toward equality around the world because of the actions of
a. central banks b. stock markets c. commodity markets d. the World Bank e. arbitrageurs
Monetary theorists maintain that to eliminate the business cycle, it is necessary to eliminate
a. money. b. currency. c. bank creation of check able deposits. d. bank reserves.