In the summer of 1953, the Korean War ended and government expenditures decreased. In terms of the AS/AD model, this change should have:
A. shifted the AD curve to the left.
B. made the AD curve flatter.
C. made the AD curve steeper.
D. shifted the AD curve to the right.
Answer: A
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Comparisons between industrialized nations and less-developed countries indicates that as income rises, the demand for a clean and well-preserved environment
a. increases by a proportional amount. b. decreases by a proportional amount. c. increases by a more than proportional amount. d. decreases by a less than proportional amount.
The demand for education is determined by the
a. demand for human capital. b. demand for nonhuman capital. c. supply of human capital. d. supply of nonhuman capital.
At the present, saving is ______.
a. not taxed b. taxed at a relatively low rate c. taxed at a relatively high rate d. seldom taxed
Which choice below is an argument that more technological change occurs in more competitive market structures?
A. Most large, oligopolistic firms such as AT&T have done a great deal of research. B. The "high-tech revolution" grew out of many tiny start-up operations. C. Small firms are too "lean and mean" to support any research and development. D. Oligopolistic firms earn the profits to pay for research; competitive firms do not.