The law of demand is derived under the assumption of
A) constant prices.
B) constant real incomes.
C) constant consumer tastes and preferences.
D) constant marginal utility.
Answer: C
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The federal government
a. runs a deficit when tax revenues are greater than government purchases. b. runs a surplus when tax revenues are smaller than government purchases. c. runs a deficit when tax revenues are greater than government outlays. d. runs a surplus when tax revenues are greater than government outlays. e. runs a surplus when tax revenues are smaller than transfer payments..
For a monopsonist, the marginal labor cost is always
a. equal to the wage rate b. less than the wage rate c. greater than the wage rate d. the same as the labor supply e. the same as the labor demand
For an inferior good, an increase in consumer incomes results in an increase in the quantity demanded of the good
a. True b. False Indicate whether the statement is true or false
Assume that the expectation of declining housing prices cause households to reduce their demand for new houses and the financing that accompanies it. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the GDP Price Index and current international transactionsin the context of the Three-Sector-Model?
a. The GDP Price Index rises, and current international transactionsbecomes more negative (or less positive). b. The GDP Price Index and current international transactionsremain the same. c. The GDP Price Index falls, and current international transactionsremains the same. d. The GDP Price Index falls, and current international transactionsrises. e. There is not enough information to determine what happens to these two macroeconomic variables.