An increase in government spending with no change in taxes leads to a
A) lower income level
B) lower price level
C) smaller money supply
D) higher interest rate
E) higher bond price
Answer: D) higher interest rate
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The figure illustrates the demand for and supply for jeans. Suppose jeans are a normal good and people's incomes increase
At the initial price of $50 for a pair of jeans, after the increase in income the quantity demanded is ________ than the equilibrium quantity and there is a ________ of jeans. A) greater; surplus B) greater; shortage C) less; surplus D) less; shortage
Which of the following is true about labor productivity?
A) it is the amount of total factor productivity (TFP) per unit of labor B) it is more difficult to measure than TFP C) it is a more general and better measure of productivity than TFP D) all of the above E) none of the above
The indifference map
A) shows that the consumer is indifferent among all consumption bundles. B) is an individual indifference curve. C) captures the same information as the utility function. D) is impossible to derive from the utility function.
Much of the research on game theory in recent decades was driven by attempts to analyze actions of players during
a. the Great Depression of the 1930s. b. World War II. c. the Cold War between the United States and the Soviet Union. d. the ascendancy of the conservative movement in the United States in the 1970s and 1980s.