In the Great Recession of 2007-2009, the stock market values shrank, causing a reverse ________.
A. interest-rate effect
B. wealth effect
C. real-balances effect
D. expectations effect
Answer: B
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Societies in which _____ produce more entrepreneurs
a. the ratio of immigrants to the local population is high b. culture supports individual achievements c. individuals are self-interested d. immigrants are allowed to hold government positions e. immigrants are more intelligent than the local population
Exhibit 2-15 Production possibilities curve
In Exhibit 2-15, if the economy moves from point L to point M, the opportunity cost of producing 10 more capital goods is:
A. 40 fewer consumption goods because at point L, 20 capital goods and 40 consumption goods are produced. B. 25 fewer consumption goods because at point M 30 capital goods and 25 consumption goods are produced. C. 15 fewer consumption goods because to go from 20 capital goods to 30 capital goods, the economy must go from 40 consumption goods to 25 consumption goods. D. 15 more consumption goods because to go from 30 capital goods to 20 capital goods, the economy must go from 25 consumption goods to 40 consumption goods.
Which product will have the most inelastic demand curve?
A. Beer B. Motor vehicles C. Milk D. Household electricity
Structuralists take the position that:
A. the rule of reason is appropriate and desirable in interpreting the Sherman Act. B. only unreasonable anticompetitive acts should be regarded as violations of the antitrust laws. C. industries should be judged on the basis of their technological progress and their price- output behavior. D. an industry that is highly concentrated will behave monopolistically.