If a "conservative" wanted to increase aggregate demand, which of the following would she tend to favor?
a. An increase in government spending, because it has a larger multiplier than tax changes.
b. A decrease in transfer payments, because it keeps the public sector small.
c. An increase in transfer payments, because it has a larger multiplier than tax changes.
d. A decrease in taxes, because it makes the public sector smaller.
d
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Suppose that on a typical day, a restaurant owner usually sells 18 club sandwiches. However, after lowering the price of a club sandwich from $6.75 to $5.95, the owner discovered that sales increased to 23 sandwiches per day. Based on this information, the restaurant owner calculated that the demand elasticity for club sandwiches was approximately:
a. -0.05 b. -0.52 c. -1.94 d. -20.2
Scenario: Not-So-Free Freeland Freeland is a semi-closed economy whose government believes in protecting national identity and building a self-sustained economy. The government's priority is to protect local jobs and provide opportunities to Freeland's emerging industries to flourish without the threat of external competition. Freeland's efforts to provide opportunities to its emerging industries is an example of its ________.
a. economic motive b. culture motive c. political motive d. social motive
An action that is the best choice under all conditions is known as a:
A. profit-maximizing strategy. B. dilemma. C. trigger strategy. D. dominant strategy.
Both Amy and Tom are trained as nurses. Amy makes $35,000 a year working as a nurse in an emergency room in a New York City hospital. Tom makes $20,000 working as a community health nurse in New York City. Which of the following is true?
A. Tom must be better off than Amy if he is willing to take a job at $15,000 a year less than Amy. B. From this information it cannot be determined who is better off because income is an imperfect measure of well-being. C. Even though income is an imperfect measure of well-being, Amy and Tom must be equally well off because either is free to switch jobs. D. Tom is clearly worse off than Amy, because he earns $15,000 a year less.