The business cycle consists of four phases. At the top we have:
A. expansion, followed by peak, and then trough followed by a recession.
B. expansion, followed by a recession, and then peak followed by recession.
C. peak, then a trough followed by a recession, and then expansion.
D. peak, then a recession followed by a trough, and finally, recovery.
Answer: D
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Classifying a good as excludable means
A) that anyone who does not pay for the good cannot consume it. B) that consumption of the good generates no externalities. C) that a producer with patent or copyright protection can exclude any other producer from selling the product. D) that someone can be barred from consuming the good based on race, ethnicity, or some other irrelevant characteristic.
Which of the following does NOT increase labor productivity?
A) increases in aggregate hours B) physical capital growth C) human capital growth D) technological advances
Which of the following statements is valid when the market supply curve is vertical?
a. Market quantity supplied does not change when the price changes. b. Supply is perfectly elastic. c. An increase in market demand will increase the equilibrium quantity. d. An increase in market demand will not increase the equilibrium price.
The principle of comparative advantage implies that
A. most people are harmed by trade. B. we should limit the extent to which people specialize. C. only wealthy countries ultimately can benefit from international trade. D. every country can benefit from international trade.