Aging baby-boomers, predisposed to hearing loss because of years of listening to loud music, are now approaching the age range in which hearing loss starts to become apparent
What effect does this have on investment spending within the hearing aid industry? A) There will no longer be an opportunity cost associated with investment spending.
B) There will be no change in real investment spending, because hearing aid manufacturers will look only at the interest rate in determining whether to expand production.
C) The investment function relating planned real investment spending to the interest rate can be expected to shift rightward.
D) The investment function relating planned real investment spending to the interest rate can be expected to shift leftward.
The correct is C) The investment function relating planned real investment spending to the interest rate can be expected to shift rightward.
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Use the following consumption schedule for an economy to answer the next question. All figures are in billions of dollars.RGDPConsumption$440$450490490540530590570640610If a government sector is introduced and a lump-sum tax of $30 billion is imposed at all levels of real GDP, then the values in the consumption column become
A. $426, $466, $506, $546, $586. B. $420, $460, $500, $540, $580. C. $432, $472, $512, $552, $592. D. $430, $470, $510, $550, $590.
Economic magnitudes measured at the prices actually paid are referred to as ________ magnitudes
A) "real" B) "actual" C) "nominal" D) "unadjusted" E) "gross"
Economists generally oppose trade restrictions such as tariffs and quotas; however, if one these devices must be used, economists generally prefer tariffs to quotas
a. True b. False
When consumers substitute a cheaper good for a more expensive one, the CPI will ________ the change in the cost of living.
A. equal B. precisely measure C. overstate D. understate