Consumption expenditure exceeds disposable income
A) when there is dissaving.
B) when there is positive saving.
C) always.
D) never.
E) only when the economy is in equilibrium.
A
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A country's domestic currency's real exchange rate, q, is best described by
A) the price of similar goods in the same market. B) the price of the domestic basket in terms of the foreign one. C) the price of a domestic basket. D) the price of the foreign basket in terms of the domestic basket. E) the price of different goods baskets in the same market.
In the four decades from 1860 to 1900, the U.S. population nearly tripled. Real Gross Domestic Product (GDP)
(a) fell by more than the amount by which the population increased. (b) fell by the same amount by which the population increased. (c) rose at about the same rate as the population increase. (d) increased by even more than the population increase.
If a profit-maximizing firm finds that, at its current level of production, MR < MC, it will
A) decrease output. B) increase output. C) shut down. D) operate at a loss.
When the government controls the price of a product, causing the market price to be below the free market equilibrium price,
A) some consumers gain from the price controls and other consumers lose. B) all producers gain from the price controls. C) both producers and consumers gain. D) all consumers are better-off.