A shoe retailer does not give a bill for shoes purchased from his store and does not report his income correctly to evade taxes. If you pay him $50, ________
A) the GDP of your country will fall
B) the GDP of your country will increase
C) the trade surplus of your country will increase
D) the GDP of your country will remain unchanged
D
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Analysis that involves value judgments about economic policies is
A) positive economics. B) normative economics. C) microeconomics. D) macroeconomics.
The real rate of interest equals the
a. money rate of interest minus the expected inflation rate. b. money rate of interest plus the expected inflation rate. c. inflationary premium. d. nominal rate of interest.
The market for oil-change can be described as a market in which monopolistic competition prevails. This means that collusion among garages that change oil is ____________ and firms engage in _________ behavior.
a. common; cooperative b. common; uncooperative c. rare; uncooperative d. rare; cooperative
When aggregate demand decreases, product prices, wage rates, and per-unit production costs are inflexible downward because of a:
A. interest-rate effect. B. ratchet effect. C. real-balances effect. D. foreign-purchases effect.