A bond is a
b. certificate of indebtedness.
A closed economy does not
a. trade with other economies.
A country with a relatively low level of real GDP per person is considering adopting…
d. neither the first nor the second
A decrease in the price of domestically produced industrial robots will be reflected in
c. the GDP deflator but not in the consumer price index.
A leading environmental group recently published a report contending that humans…
c. disagree with the report, in part because it ignores the mitigating effects of
A management professor discovers a way for corporate management to operate more efficiently…
d. common, but not proprietary, knowledge.
A particular stock pays an annual dividend of $2 per share and the annual dividend yield is 4 percent…
A person who is not employed and claims to be trying hard …
b. is counted as unemployed but should be counted as out of the labor force
A problem that the Fed faces when it attempts to control the money supply is that
d. the Fed does not control the amount of money that households choose to hold as
deposits in banks.
A risk-averse person has
d. a utility curve that slopes upward and a marginal utility curve that slopes downward.
A risk-averse person has
b. a utility function whose slope gets flatter as wealth rises.
This means they have diminishing marginal utility of wealth.
According to the classical dichotomy, when the money supply doubles which of the following doubles?
a. the price level and nominal GDP
According to the principle of monetary neutrality, a decrease in the money supply will not change
According to 2007 data on the U.S. population, which of the following groups…
c. black males
According to the rule of 70, if the interest rate is 10 percent, about how long will it take for the value of a savings account to double?
b. about 7 years
According to the definitions of private and public saving, if
remained the same, an increase in taxes would
c. lower private saving and raise public saving.
According to the quantity equation, if
= 6,000, and
= 3,000, then
According to the quantity equation, the price level would change less than proportionately with a rise in the money supply if …
b. either a rise in output or a fall in velocity
Adelina owns her own business.
Odilon is an unpaid worker in his family’s business.
Who is included in the Bureau of Labor Statistics…
c. both Adelina and Odilon
After a corporation issues stock, the stock
d. None of the above are correct.
All else equal, which of the following would tend to cause real GDP per person to rise?
b. an increase in investment in human capital
An organization that tries to encourage the flow of investment to poor countries is the
a. World Bank
An economy’s production function has the constant-returns-to-scale property…
d. increase, but not necessarily by either 50 percent or 100 percent.
An increase in the minimum wage would