When consumers' incomes increased 6 percent, the quantity of wine bought increased 12 percent. This result means
A) wine is a luxury.
B) the demand for wine is income inelastic.
C) wine is a necessity.
D) wine is an inferior good.
A
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According to the new classical view, if the money supply and prices fall but output remains the same indicates that
a. expectations must be adaptive. b. this change in the money supply was anticipated. c. aggregate supply must have shifted upward. d. none of the above can explain this.
Which of the following statements is true?
a. Multinational firms tend to reduce the flow of technology between countries. b. Most foreign direct investment is found in labor-intensive industries. c. Multinationals do not always help to reduce the trade deficit of the host country. d. Foreign firms contribute to a significant increase in the host country's unemployment rate. e. Foreign direct investment reduces the stock of capital of the domestic country.
When prisoners' dilemma games are repeated over and over, sometimes the threat of penalty causes both parties to cooperate
a. True b. False Indicate whether the statement is true or false
The solvency of Social Security can be extended if
A. the tax rate is reduced. B. the cap on taxable earnings is lowered. C. the retirement age is reduced. D. the program is means tested.