A credible threat is:
A. legally enforceable.
B. in the threatener's interest to carry out.
C. not in the threatener's interest to carry out.
D. possible to carry out.
Answer: B
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A new discovery of large volumes of previously unknown deposits of natural gas in Pennsylvania would
A) shift only the short-run aggregate supply curve to the right. B) shift only the long-run aggregate supply curve to the right. C) not affect either the short-run or long-run aggregate supply curves. D) shift the short-run and long-run aggregate supply curves to the right.
An economic theory is also known as an economic
A) model. B) prediction. C) conclusion. D) assumption.
A measure of the responsiveness of quantity supplied to changes in price is known as _____
a. cross-price elasticity b. price elasticity of demand c. price elasticity of supply d. income elasticity e. point elasticity
The positive slope of the consumption function indicates that
a) consumers spend less out of each extra dollar of income b) the amount of household wealth is subject to change c) when prices fall consumers spend more d) consumers increase their total consumption expenditure when disposable income increases