01 May Question: Question 16(Multiple Choice Worth 1 points) In an economy with a horizontal aggregate supply curv…
Suppose the U.S. Surgeon General announces that eating a high fiber diet while in your twenties decreases chances of developing Alzheimer’s disease by 50 percent. Which of the above market changes for cream of wheat, a food that is low in fiber, are likely to occur?
A
B
C
D
E
Question 27(Multiple Choice Worth 1 points)
If the Producer’s Price Index changes from 100 to 90, economists will know that
inflation is decreasing in the economy.
inflation is increasing in the economy.
unemployment is increasing in the economy.
unemployment is decreasing in the economy.
the PPI has no relation to unemployment or inflation.
Question 28(Multiple Choice Worth 1 points)
A worker who is unemployed while he switches from building houses to teaching school is
cyclically unemployed
frictionally unemployed
structurally unemployed
an employed individual
not unemployed
Question 29(Multiple Choice Worth 1 points)
In the circular flow diagram, tourists spend money in
the product market that provides goods and services to firms.
the product market that provides profit for firms.
the product market that provides revenue for firms.
the factor market that provides profit for firms.
financial markets that provides profit for firms.
Question 30(Multiple Choice Worth 1 points)
In the circular flow diagram, profit flows from the
product market to the firms.
factor market to the firms.
firms to the product market to the households.
product market to the households.
factor market to the households.
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