The points along the demand curve represent the maximum price consumers are willing to pay for various quantities of a product.
Indicate whether the statement is true or false.
Ans: True.
Explanation: A demand curve depicts the maximum willingness to pay of consumers for different quantities as the demand curve is the reservation price of consumer above which consumer does not want to buy the good.
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The total volume of business sales in our economy is several times larger than GDP because ________.
A. GDP does not take taxes into account B. GDP grossly understates the value of our annual output C. GDP excludes intermediate transactions D. Total sales are in money terms and GDP is always stated in real terms
Which of the following goods is the most liquid?
A. Painting by Degas B. Checking account C. Home-baked cookies D. Gold watch
A closed economy refers to an economy in which:
A. a country exports, but does not allow imports. B. all goods are produced and sold domestically. C. intermediate goods are sold domestically. D. all goods are consumed domestically.
When constructing a basic macroeconomic model, several assumptions (not realistic, but necessary to simplify the analysis) are made. Which of the following are assumed to be constant?
A. The price level B. Consumption spending C. The value of fixed-money assets D. Taxes