Which of the following is an example of contractionary fiscal policy?
A. Cutting spending
B. Reducing taxes
C. Increasing spending
D. None of these
Answer: A
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The market for smartwatches has begun to grow, due in part to the success of the Apple Watch
Following the successful launch of the Apple Watch in 2015, companies such as Samsung, Sony, and LG have all developed products to compete with the Apple Watch. The smartwatches introduced to compete with the Apple Watch would be considered A) complements to the Apple Watch. B) substitutes for the Apple Watch. C) normal goods compared to the Apple Watch. D) inferior goods compared to the Apple Watch.
Historically, U.S. federal expenditures have ________ as a percentage of GDP
A) remained fairly stable B) increased dramatically C) slowly declined D) been extremely volatile
A consumer is likely to _____________ his opportunity costs when ____________.
A. undervalue; they are not right in front of him B. undervalue; they are obvious C. overvalue; they are not obvious D. overvalue; they are right in front of him
A firm will shut down if
a. it earns too little economic profit b. there are a large number of buyers and sellers c. it suffers an economic loss d. there is a change in tastes and preferences e. price is everywhere less than average variable cost