Why is the effect of saving so controversial to economists?
a. Increased saving always has an unambiguously positive effect on the economy
b. Increased saving always has an unambiguously negative effect on the economy
c. Increased saving may hurt the economy in the short run but help it in the long run
d. Decreased saving my hurt the economy in the short run but help it in the long run
e. Because different schools of economic thought use different definitions
C
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A price cut will decrease the revenue a firm receives if the demand for its product is
a. elastic. b. inelastic. c. of unit elasticity. d. straight elastic.
To measure how productive workers in the economy are, the best measure to use would be
A. real GDP. B. GDP divided by the population. C. GDP divided by the nation’s capital stock. D. GDP divided by hours worked.
In this graph, which of the following has an upward-sloping curve?
a. MC
b. D
c. MR
d. P*
Which of the following would likely cause the dollar to appreciate?
a) Rising interest rates in the United States. b) An increase in United States citizens' preference for foreign goods. c) Income growth of the United States exceeding that of other countries. d) Rising inflation in the United States.