Which of the following is an example of the law of demand?
A) A decrease in the price of tea is followed by an increase in tea purchases.
B) A decrease in the price of tea is followed by a decrease in tea purchases.
C) An increase in the price of tea has no effect on the amount of tea purchased.
D) The amount of tea purchased increases when the price is constant.
Answer: A
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The major factor affecting a nation's balance of payments is
A) an increase in its rate of unemployment. B) its rate of inflation relative to the rate of inflation of its trading partners. C) a change in the productivity of its labor. D) its stock market movements.
In the presence of long lags, attempts at stabilizing the economy may actually destabilize it.
Answer the following statement true (T) or false (F)
The net result of deflation is to:
A. increase consumption and decrease investment, increasing aggregate demand overall. B. decrease consumption and increase investment, decreasing aggregate demand overall. C. decrease consumption and investment, decreasing aggregate demand. D. increase consumption and investment, increasing aggregate demand.
A radio signal broadcast through the air is ________ in consumption, and listeners are ________.
A. nonrival; excludable B. rival; excludable C. rival; nonexcludable D. nonrival; nonexcludable