- Indicate whether each of the following statements applies to microeconomics or macroeconomics. L01.3
- The unemployment rate in the United States was 3.7 percent in December 2018.
- A U.S. software firm laid off 15 workers last month and transferred the work to India.
- An unexpected freeze in central Florida reduced the citrus crop and caused the price of oranges to rise.
- U.S. output, adjusted for inflation, increased by 2.3 percent in 2017.
- Last week Wells Fargo Bank lowered its interest rate on busi-ness loans by one-half of i percentage point f. The consumer price index rose by 2.2 percent from Novem-ber 2017 to November 2018.
- Suppose that you are given a $100 budget at work that can be spent only on two items: staplers and pens. If staplers cost $10 each and pens cost $2.50 each, then the opportunity cost of purchasing one stapler is. I-01A a. 10 pens. b. 5 pens c. zero pens. d. 4 pens
- Decide whether each (.lf the following descriptions most closely corresponds to being part of a command system, a market system, or a laissez faire system. L02.1
- A woman who wants to start a flower shop finds she cannot do so unless the central government has already decided to allow a flower shop in her area
- Shops stock and sell the goods their customers want, but the government levies a sales tax on each transaction in order to fund elementary schools, public libraries, and welfare pro-grams for the poor.
- The only taxes levied by the government are to pay for national defense, law enforcement, and a legal system designed to enforce contracts between rITIVatP riti7pne
- Identify each of the following quotes as being associated with either the concept of the invisible hand or the concept of cre-ative destruction. L02.4
- “If you compare a list of today’s most powerful and profit able companies with a similar list from 30 years ago, you will see lots of new entries “
- “Managers in the old Soviet Union often sacrificed product quality and variety because they were being awarded bonuses for quantitative, not qualitative, targets.”
- “Each day, central planners in the old Soviet Union were tasked with setting 27 million prices—correctly.”
- it is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest “