A policymaker would prefer that the lag in the effect of a policy be
A) long and variable in magnitude or size.
B) short and fixed in magnitude or size.
C) long and fixed in magnitude or size.
D) short and variable in magnitude or size.
B
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Economists apply the term "Great Inflation" to which decade?
A) 1930s B) 1940s C) 1950s D) 1960s E) 1970s
Economic profits are maximized at the point at which
A) marginal revenues equal marginal costs. B) accounting profit exceeds economic profit. C) total revenues are greater than total costs. D) accounting profits are equal to zero.
John takes 10 minutes to iron a shirt and 20 minutes to type a paper. Harry takes 10 minutes to iron a shirt and 30 minutes to type a paper. Which of the following statements is correct?
a. Harry has a comparative advantage in ironing. b. Harry has a comparative advantage in typing. c. Harry has an absolute advantage in typing. d. Harry has an absolute advantage in ironing. e. Neither can gain from specialization and exchange.
If a bushel of wheat costs $6.40 in the United States, costs 40 pesos in Mexico, and the nominal exchange rate is 10 pesos per dollar, then the real exchange rate is
a. 1.60 b. 1.25 c. .625 d. None of the above is correct.