If productivity increases by 3 percent but wages increase by 4 percent, then it is most likely that the price level will:
A. fall by 1 percent.
B. fall by 7 percent.
C. rise by 1 percent.
D. rise by 7 percent.
Answer: C
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Which of the following is the most efficient method to reduce pollution emissions?
a. government pollution charges or taxes b. non-tradable emission standards that cap allowable pollution c. common law enforcement of property rights, when those rights are well-defined and transaction costs are low d. legislated regulations limiting the quantity of emissions allowed by each firm
If supply is perfectly inelastic, the price elasticity of supply is equal to:
A. 1. B. 0. C. infinity. D. a negative number between 0 and infinity.
A bond has a face value of $10,000, a price of $12,000, and coupon payments of $2000 for two years. The current yield of this bond is
A) 10%. B) 16.7%. C) 20%. D) 30%. E) none of the above
Which of the following describes what happened to the economy of the South after the Civil War?
A. The South, with the aid of new capital investment, public and private, became industrialized two decades after the Civil War. B. The transcontinental railroads that were completed in the 1860s, 1870s, and 1880s played a key role in the industrialization of the South in the 1880s and 1890s. C. The South remained the poorest region in the country until the growth of the Sun Belt took off in the 1960s. D. The South remained a largely agricultural section of the economy until the 21st century.