There are a number of "trade-offs" in economics. The production possibilities curve depicts the trade-off between producing one set of goods and another, such as consumption and capital goods. The trade-off between inflation and unemployment is yet another and is depicted by the
a. Laffer curve
b. aggregate supply curve
c. Phillips curve
d. aggregate demand curve
e. Keynesian curve
C
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The consumption function is the relationship between ________, other things remaining the same
A) consumption expenditure and net taxes B) net taxes and disposable income C) consumption expenditure and the price level D) consumption expenditure and disposable income E) consumption expenditure and saving
The effect of the September 11 attacks on the World Trade Center on the market for office space in downtown Manhattan was that both the equilibrium price and the equilibrium quantity fell. What is the most likely explanation for this?
A) Supply and demand both shifted left, and the magnitude of the demand shift was greater. B) Supply and demand both shifted left, and the magnitude of the supply shift was greater. C) Supply shifted left, demand shifted right, and the magnitude of the demand shift was greater. D) Supply shifted left, demand shifted right, and the magnitude of the supply shift was greater.
What is the most likely effect of the development of cell phones (many use this for time also) on the watch industry?
a. Increased price elasticity of demand for the watch industry because cell phones are complements b. decreased price elasticity of demand for the watch industry because cell phones are complements c. Increased price elasticity of demand for the watch industry because cell phones are substitutes d. decreased price elasticity of demand for the watch industry because cell phones are substitutes
Compared to a proprietorship, an advantage of a partnership is
A) that profits are not taxed twice. B) double taxation. C) the ability to take advantage of greater specialization. D) the limited liability of the partners.