Which of the following are components of fiscal policy?
What will be an ideal response?
government purchases, transfer payments, and taxes
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Refer to the scenario above. If the rules of the gamble are changed such that in the case of heads, the individual wins $50, and in the case of tails, the individual loses $100, the expected value of the gamble changes to:
A) $25. B) -$25. C) $50. D) -$50.
A country decides to reduce its government spending. The resulting economic change will be represented by a(n):
a. upward movement along the aggregate demand curve. b. downward movement along the aggregate demand curve. c. leftward shift of the aggregate demand curve d. rightward shift of the aggregate demand curve.
If the price of a cola increased by 12% and consumers responded by purchasing 24% less cola, the absolute value of price elasticity of demand for cola would be
A) 0.20. B) 1.2. C) 2. D) 0.5.
Jane has $500 a week to spend on clothing and food. The price of clothing is $25 and the price of food is $10. What is the equation for Jane's budget constraint?
A. ($25 × Clothing) × ($10 × Food) < $500 B. ($25 × Clothing) / ($10 × Food) = $500 C. $25 × Clothing + $10 × Food ? $500 D. $25 × Clothing + $10 × Food = $500