After watching a movie, Alan chooses not to watch a second and goes for a walk instead. Economists could explain his choices using the concept of:
A. budget constraints.
B. diminishing marginal utility.
C. income effect.
D. substitution effect.
B. diminishing marginal utility.
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For the following questions, suppose an economy produces only pens and pencils, and that the quantity and price data is given by this table
pens pencils Year 1 quantity 15 10 Year 1 price $12 $12 Year 2 quantity 17 12 Year 2 price $14 $15 What is the real GDP in year 2 using base year 1? A) $418 B) $300. C) $360. D) $338.
If the government increases its spending or reduces its taxes in order to influence the level of economic activity, it is engaging in
a. regulatory policy b. antitrust policy c. monetary policy d. fiscal policy e. supply-management policy
The short run in macroeconomics is the period in which:
A. prices change significantly. B. no contracts or agreements exist to fix prices. C. demand determines output. D. the demand curve is vertical.
Which form of disciplinary action involves a situation where the employee is placed in a position of lower responsibility and pay?
A) suspension B) termination C) demotion D) letter of reprimand