An increase in the subsidy paid to producers of tobacco
A. shifts the demand for tobacco to the left.
B. shifts the demand for tobacco to the right.
C. shifts the supply of tobacco to the right.
D. shifts the market price of tobacco.
Answer: C
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Consumers in an economy buy only three general types of products: A, B, and C. Changes in the prices of these items over a period are shown below: Average Price per UnitProductQuantityYear 1Year 2A10$10$8B152022C85055Using year 1 as the base year, the country's price index in year 2 is ________.
A. 100.0 B. 105.2 C. 106.3 D. 103.9
Using fiscal policy to stabilize the economy is difficult because
A. there are time lags involved in the use of fiscal policy. B. the effects of policy changes are known with certainty. C. the size of the government debt doesn't matter. D. potential income is known.
For an economy starting at full employment real GDP, a decrease in autonomous expenditure results in a(n)
A. inflationary output gap. B. increase in full-employment output. C. decrease in full-employment output. D. recessionary output gap.
What type of economic analysis is limited to testable, verifiable statements?
a. Macroeconomics. b. Entrepreneurial economics. c. Positive economics. d. Normative economics.