11) Discrimination that occurs when people’s preferences cause them to discriminate against a certain group is referred to as: A) group discrimination. B) implicit discrimination. C) explicit discrimination. D) taste-based discrimination 12) An employer discriminating against Asian workers is an example of: A) implicit discrimination. B) explicit discrimination. C) statistical discrimination. D) taste-based discrimination. 13) The market implications of taste-based discrimination was in part […]

  6.4   Integrative Questions   Consider the following people: •Chris quits his job as an automobile mechanic to pursue his college education full-time. •Arrelo is temporarily laid off from her technical support job because of a strike by production workers. •Schurita graduated from college in May and is currently looking for a job. •Bo quit his job on September 1 and then, after looking for […]

  11) A recessionary output gap implies that A) the demand for all factor services will be relatively low. B) the intersection of AD and AS occurs where real GDP exceeds potential output. C) the economy’s resources are being used at more than their normal capacity. D) there is upward pressure on wages. E) there is excess demand for most factors of production. 12) An […]

    31) Which of the following statements are true? A) A liquid asset is one that can be quickly and cheaply converted into cash. B) The demand for a bond declines when it becomes less liquid, decreasing the interest rate spread between it and relatively more liquid bonds. C) The differences in bond interest rates reflect differences in default risk only. D) The corporate […]

    11) Which of the following statements is true? A) A decrease in the crime rate increases GDP as people will spend more on security. B) Household production is counted in GDP as it amounts to real production. C) GDP accounting rules do not adjust for production that pollutes the economy. D) GDP growth distributes income equally to people in the economy.   12) […]

    101) A contractionary monetary policy that has been imposed to reduce inflation will most likely A) have no effect on the short-run level of GDP and unemployment. B) not control inflation, since money supply changes have little or no effect on the price level. C) produce long-lasting unemployment if wages adjust rapidly. D) lead to a recession that is long and severe, under […]

    21) Demand curves slope ________ because as the price increases and other things remain the same, the quantity demanded ________. A) downward; decreases B) downward; increases C) upward; decreases D) upward; increases E) downward; does not change 22) The market demand curve A) cannot show how quantity demanded changes in response to a change in price. B) cannot show a change in demand […]

  11.3   What Happens to Profits in the Long Run? 1) A monopolistically competitive industry that earns economic profits in the short run will A) continue to earn economic profits in the long run. B) experience the entry of new rival firms into the industry in the long run. C) experience the exit of existing firms out of the industry in the long run. D) […]

  11) Neither the demand nor the supply of gasoline is perfectly elastic or inelastic. When the government increases the federal tax on gasoline, the effect on buyers is that the price they pay A) rises. B) falls. C) does not change. D) rises if the demand is inelastic and falls if the demand is elastic. E) rises if the supply is inelastic and falls […]

  56) For the world, what period of time experienced the fastest growth rate of real GDP per person? A) around 500 B.C. B) around 400 A.D. C) between 1000 A.D. and 1500 A.D. D) after about 1850 A.D. E) between 1500 A.D. and 1850 A.D.     57) Real GDP per person averaged $150 a year (in 2009 dollars) from 1,000,000 BC until 1620. […]