If you purchase a gift worth $25 for your sister, but your sister would be willing to pay only $10 is she bought the item for herself, then the:
A. Total utility of the gift is $35
B. Total utility of the gift is $15
C. Marginal utility of the gift is $15
D. Loss of value in the gift is $15
D. Loss of value in the gift is $15
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Which of the following would be most likely to induce Congress and the president to conduct contractionary fiscal policy? A significant
A) decrease in oil prices. B) increase in labor productivity. C) increase in inflation. D) decrease in real GDP.
A tax that taxes a larger percentage of an individual's income as their income rises is called a _____
a. proportional tax b. progressive tax c. head tax d. regressive tax
Investment in human capital
A) is quite different from and has a much lower return than investment in physical capital. B) is just like investment in physical capital and has a return similar to that earned from other investments. C) is just like investment in physical capital but has a much greater return than do other investments. D) is not comparable to other investments in any way since human capital is embodied in the person.
In the income-expenditure framework, if planned aggregate expenditures are less than real gross domestic product (GDP), _____
a. saving will increase b. the price level will increase c. inventories will increase d. inventories will decrease e. consumption will decrease