Select the letter of the diagram in Figure 28.1 that best represents the effect of each event on the United States wheat market, ceteris paribus: Relaxed immigration laws lead to lower labor costs. (See Figure 29.4.)
A. a.
B. b.
C. c.
D. d.
Answer: B
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Suppose the demand curve for a product is downward sloping and the supply curve is upward sloping. If a unit tax is imposed in the market for this product
A) the tax burden will be shared among the government, buyers and sellers. B) buyers bear the entire burden of the tax. C) the tax burden will be shared by buyers and sellers. D) sellers bear the entire burden of the tax.
The postwar years:
a. ushered in what has been described as an unthinking materialist culture. b. ushered in what has been described as a consumer-oriented society that represented the fulfillment of the American dream. c. featured an unusual deviation from the long-term trend toward smaller families. d. All of the above are correct. e. Only a and b are correct.
Microeconomics: a. provides an overall view of the economy and how it functions
b. explores the behavior of individual consumers and firms when confronted with scarcity. c. examines the aggregate behavior of consumers and firms when confronted with scarcity. d. is a "positive" science, whereas macroeconomics is a "normative" science.
The Stability and Growth Pact (SGP) was a failure because of all of the following reasons, EXCEPT:
A) surveillance failure. B) weak punishment. C) once countries joined the Eurozone, enforcement of rules was impossible. D) consultations between the Federal Reserve and the ECB broke down.