If consumer income and prices increase by the same percentage,
A) the consumer will buy more of both goods.
B) the consumer will buy more of both goods if they are both normal goods.
C) the consumer will buy less of both goods if they are both inferior goods.
D) the consumer's utility maximizing bundle stays the same.
D
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A monopolistic industry will have a Herfindahl index value of:
a. 1. b. 100. c. 500. d. 1000. e. 10.
Which of the following is a reason for the slow economic growth in former colonial nations?
a. Inadequate foreign aid b. A communist system of government c. Lack of skilled officials d. Religious extremism e. High entrepreneurial skills
Despite the monetary expansion of the 1992-2000 period, the inflation rate
a. rose due to adverse supply shocks. b. rose due to large increases in aggregate demand. c. fell despite adverse supply shocks. d. fell due to favorable supply shocks.
Which of the following statements about the Social Security (OASDI) program is FALSE?
A. When an insured worker dies, benefits continue for widows or other dependents. B. Benefits are based on need. C. Benefits are an intergenerational transfer program from those who work to those who don't work. D. Benefits are paid to individuals who would be financially secure in their absence.