For a good such as a large screen HD television set, the income elasticity would likely be
A) negative.
B) equal to zero.
C) positive and less than one.
D) positive and greater than one.
E) undefined because large screen, HD TVs are bought by many consumers.
D
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National income accounting helps economists and policymakers ________.
A. determine which firms are likely to succeed or fail B. measure what is occurring in each specific labor market C. follow the long-run course of the economy to assess whether it has grown or stagnated D. It helps accomplish all of these
In a free market there are significant restrictions on how a good or service can be produced or sold
Indicate whether the statement is true or false
If the interest rates in an economy are close to zero, _____
a. there will be an excess demand for loanable funds b. the economy will be likely to fall into a liquidity trap c. expansionary monetary policy will be effective, but not contractionary monetary policy d. contractionary monetary policy will be effective, but not expansionary monetary policy
Refer to the table below. If supply decreased by 2 units at each price, what would the new equilibrium price and quantity be?
A. $3 and 5 units
B. $4 and 4 units
C. $5 and 5 units
D. $6 and 6 units