The diagram in panel b (graph) is an example of
A. a demand curve
B. the substitution effect
C. the income effect
D. a demand schedule
Ans: A. a demand curve
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Household wealth is defined as the value of a household's
A) assets minus the value of its liabilities. B) liabilities. C) assets plus the value of its liabilities. D) assets.
The Grangers are noted for
a. encouraging the federal government to re-issue "greenbacks.". b. establishing cooperatives that sold farm and consumer goods to their members. c. refusing to sell grain to foreign countries. d. forming a cartel that set upper limits on members' output of basic farm products. e. All of the above.
If prices in the United States fall relative to Japan, then the:
a. Dollar depreciates because U.S. imports from Japan fall, and U.S. exports to Japan rise. b. Yen depreciates because U.S. imports from Japan fall, and U.S. exports to Japan rise. c. Yen depreciates because U.S. imports from Japan fall, and U.S. exports to Japan fall. d. Yen depreciates because U.S. imports from Japan rise, and U.S. exports to Japan fall. e. Change in the value of the dollar or yen is uncertain because exports and imports rise.
A difficulty with effective fiscal policy is the:
A. guess as to what potential GDP is. B. reality of time lags. C. lack of relevant information needed to decide the magnitude of change. D. All of these are true.