If Ebenezer Scrooge spends rather than saves his vast wealth, he will
A) promote economic growth because he is increasing the amount of funds available for investment.
B) slow economic growth because he is reducing the amount of funds available for investment.
C) slow economic growth because he is increasing the amount of funds available for investment.
D) promote economic growth because he is decreasing the amount of funds available for investment.
B
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Suppose that the total production of an economy consists of 10 oranges and 5 candy bars, each orange sells for $0.20, and each candy bar sells for $1.00. Which expression of the output of this economy is most consistent with the concept of GDP?
A. This economy produces two-thirds oranges and one-third candy bars. B. This economy produces food valued at $1.20. C. This economy produces $7.00 worth of food. D. This economy produces 15 food items.
The concept of inferior goods can be used to show that
A) lower prices signal poorer quality. B) indifference curves can have positive slopes. C) being able to consume more of all goods does not mean that a person will consume more of every good. D) consumers will always buy more of all products if their incomes increase.
If the economy were producing at point F,
A. it would not be using its resources efficiently.
B. it would be in a recession.
C. it could gain units of guns without having to sacrifice units of butter.
D. it would specializing exclusively in butter production.
A unit tax of $10 has been levied on a good. The equilibrium price of the good will most likely
A. decrease by $10. B. increase by $10. C. remain unchanged. D. increase by an amount less than $10.