Items bought by individuals to provide personal enjoyment are termed
A) consumption goods.
B) personal goods.
C) consumption or investment goods.
D) standard goods.
E) pleasure goods.
A
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The table below gives the quantities and prices for 2010 and 2015 for an economy that produces just two goods: sailboats and coconuts. Quantity producedPrice 2010201520102015Sailboats1020$500$525Coconuts2,0002,400$1$2For this economy that produces just sailboats and coconuts, and with 2010 is the base year, real GDP was approximately ________ times larger in 2015 than it was in 2010.
A. 1.77 B. 2.19 C. 1.34 D. 1.65
If the nominal interest rate is higher than the inflation rate, the value of your savings:
A. will increase. B. will decrease. C. should remain about the same. D. cannot be assessed without knowing the beginning balance of savings.
A tax has an excess burden whenever
A. people are unable to alter their behavior to avoid paying it. B. government seeks to raise it. C. it raises a great deal of revenue. D. it induces people to change their behavior.
The reduction in aggregate demand caused by deflation:
A. further reduces prices, causing a deflationary spiral. B. further reduces prices, causing aggregate supply to shift left back to long-run equilibrium. C. will decrease production and increase prices, causing inflation to adjust the price level. D. will decrease production and increase prices, causing a deflationary trap.