If the economy grows, the government's budget position should automatically:
a) Worsen
b) Improve
c) Stay the same
d) Decrease with inflation
Answer: b) Improve
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Pete is a perfectly competitive rose grower. The above table gives quantities and the price for which Pete can sell his roses
a) What is Pete's total revenue if he sells 1 dozen roses? 2 dozen roses? 3 dozen roses? 4 dozen roses? b) What is the marginal revenue of the 2nd dozen roses sold? Of the 3rd dozen? Of the 4th dozen?
If the money multiplier is approximated to be 2, then the reserve ratio must be:
A. 50 percent. B. 5 percent. C. 2 percent. D. 20 percent.
Assume the price of gasoline doubles tonight and remains at that price for the next two years. Compared with the long-run price elasticity of demand for gasoline, the short-run price elasticity of demand for gasoline will be ________.
A. more variable B. higher C. lower D. the same
Suppose that an economy has 100 basic goods and services. If it were a barter economy it would need
A. many more prices than a money economy. B. a few more prices than a money economy. C. the same number of prices as a money economy. D. a few less prices than a money economy.