Assuming velocity is constant, the rate of inflation equals the difference between the rate of:
A. growth in the money supply and the rate of growth in nominal GDP.
B. growth in the money supply and the rate of growth in real GDP.
C. growth in real wages and the rate of growth in real GDP.
D. unemployment and the rate of economic growth.
Answer: B
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A perfectly competitive firm is more likely to shut down during a recession, when the demand for its product declines, than during an economic expansion, because during the recession it might be unable to cover its
A) fixed costs. B) variable costs. C) external costs. D) depreciation due to machinery becoming obsolete.
The vertical and horizontal axes intercepts of the budget line represent the:
a. quantity of goods that will be purchase if only that good is purchased. b. preference of one good compared to another good. c. quantity of each good that is outside the consumer's income. d. only two choices that will spend the entire budget.
In general, Democrats tend to prefer
a. higher marginal tax rates to promote vertical equity, while Republicans tend to prefer lower marginal tax rates to promote incentives to work and save. b. lower marginal tax rates to promote vertical equity, while Republicans tend to prefer higher marginal tax rates to promote incentives to work and save. c. higher marginal tax rates to promote incentives to work and save, while Republicans tend to prefer lower marginal tax rates to promote vertical equity. d. lower marginal tax rates to promote incentives to work and save, while Republicans tend to prefer higher marginal tax rates to promote vertical equity.
Kane just lost her job as a dock worker. Her former salary was $750 per week. She receives $350 in unemployment insurance while she is actively looking for a new job. She sees a job she is qualified for that pays $600 per week. What is the opportunity cost per week of remaining unemployed?
a. $250 b. $350 c. $600 d. $950