The concept of a "political business cycle" suggests that a possible cause of macroeconomic instability is due to the use of fiscal policy for political purposes.
Answer the following statement true (T) or false (F)
True
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Along a linear downward-sloping demand curve, the price elasticity of demand will be
A. equal to zero across each price range. B. greater than one across each price range. C. different across each price range. D. less than one across each price range.
"Unlike a perfect competitor, a profit-maximizing monopolist produces at an output rate at which marginal revenue exceeds marginal cost." Do you agree or disagree? Why
What will be an ideal response?
Productivity measures: a. how efficiently resources are turned into goods and services
b. how efficiently goods and services are consumed by the consumers. c. the level of skills embodied in a unit of labor. d. the ratio of inputs to a specific amount of output. e. the availability of resources in an economy.
Figure 4-6
Grapes can be used for wine or for raisins. Which graph in Figure 4-6 best depicts the effects on the U.S. raisin market of a decrease in purchases of domestic wines?
a.
1
b.
2
c.
3
d.
4