When consumers lose confidence in the future of their economy, they begin to consume more, and this causes the aggregate demand curve to shift to the right
a. True
b. False
Indicate whether the statement is true or false
False
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According to economists
A) market capitalism is the best system available and some government intervention and regulation can either help or harm the social interest. B) market capitalism is the best system available and any government intervention and regulation will inevitably harm the social interest. C) centrally planned socialism is the best system available since governments generally make decisions that are in social interest. D) centrally planned socialism and pure market capitalism are equally capable of promoting social interest, but a mixed economy is an undesirable compromise between the two that will harm social interest.
Economists consider the effects of free trade on income distribution to be ________ important than the effects on overall welfare because ________
A) less; those who are harmed can be compensated by those who gain B) more; those who are harmed are not compensated by those who gain C) less; the effects on income distribution are minor and inconsequential D) more; the effects on income distribution are major and consequential E) less; the wealthy benefit and only the poor lose
On the graph above, an example of a positive demand shock is the movement from point ________ to point ________
A) F; G B) H; I C) F; H D) H; F E) none of the above
Figure 34-4
?
In Figure 34-4, the opportunity cost of a unit of wheat in terms of cotton is
A. 1 for the United States and 5 for Egypt. B. 20 for the United States and 2 for Egypt. C. 1 for the United States and 2 for Egypt. D. 20 for the United States and 10 for Egypt.