If the economy's real GDP declines for at least one-half year, it's in a
a. depression
b. recession
c. downturn
d. recovery
e. limited prosperity
B
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Everything else held constant, the interest rate on municipal bonds rises relative to the interest rate on Treasury securities when
A) income tax rates are lowered. B) income tax rates are raised. C) municipal bonds become more widely traded. D) corporate bonds become riskier.
According to Garrett Hardin's view of The Tragedy of the Commons:
a. Externalities will be internalized by the market. b. Individuals will use the commons up to the point where marginal benefits equal marginal social costs. c. Individuals will create institutions to prevent the collapse of the commons. d. Individual will use the commons beyond the socially efficient point.
Refer to Figure 4-4. Which of the following would cause the demand curve to shift from Demand C to Demand A in the market for tennis balls in the United States?
A. a decrease in the price of tennis racquets B. an expectation by buyers that their incomes will increase in the very near future C. an increase in the price of tennis balls D. a decrease in the number of people in the United States under age 70
At each round of the multiplier process, increases in income:
a. leak out of the expenditures stream in the form of investment and taxes. b. leak out of the expenditures stream in the form of saving and imports. c. are matched by a smaller increase in expenditures. d. result in even greater increases in expenditures due to investment and exports. e. result in no change in total expenditures.