Suppose government expenditures on goods and services increase, transfers are unchanged, and taxes rise by less than the increase in expenditures. These changes in the government's budget cause
a. both the equilibrium interest rate and the equilibrium quantity of loanable funds to fall.
b. both the equilibrium interest rate and the equilibrium quantity of loanable funds to rise.
c. the equilibrium interest rate to rise and the equilibrium quantity of loanable funds to fall.
d. the equilibrium interest rate to fall and the equilibrium quantity of loanable funds to rise.
c
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Trade, both within and across national borders, ________
A) discourages specialization in production B) exploits absolute advantage C) reduces interdependence among nations D) increases productive efficiency
Suppose that each of the seven dwarfs buys 4 mugs of ginger ale per week from Snow White's cafe, when the price per mug is $2 . If the seven dwarfs are the entire market demand for Snow White's ginger ale, then which of the following is the correct value for market quantity demanded of ginger ale at a price of $2?
a. 4 b. 8 c. 7 d. 28
Suppose that real GDP grew more in Country A than in Country B last year
a. Country A must have a higher standard of living than country B. b. Country A's productivity must have grown faster than country B's. c. Both of the above are correct. d. None of the above are correct.
The following condition describes the economic term “scarcity”:
a. The number of rental cars available at the airport b. The quality of the air that we breathe c. The time it takes to learn a new skill d. Global oil reserves are limited.