If your income stays the same and the price level increases, you will buy fewer goods and services due to the
A) interest rate effect. B) real-balance effect.
C) open economy effect. D) aggregate balances effect.
B
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When quantity supplied is greater than quantity demanded, there
A. is a shortage. B. is a surplus. C. may be either a shortage or a surplus. D. may be neither a shortage or a surplus.
Using a production possibilities curve, a technological advance that increases the amount of output for both goods while using the same amount of inputs would be illustrated by which of the following?
What will be an ideal response?
Refer to the information provided in Table 23.10 below to answer the question(s) that follow. Table 23.10
Refer to Table 23.10. The MPC in this economy is
A. 0.5. B. 0.6. C. 0.75. D. 0.8.
Assume that Abby, Ben, Clara, Joe, and Matt are the only citizens in a community. A proposed public good has a total cost of $1000. All five citizens will share an equal portion of this cost in taxes. The benefit of the public good is $220 to Abby, $210 to Ben, $210 to Clara, $180 to Joe, and $120 to Matt. In a majority vote, this proposal will most likely be:
A. Accepted; four in favor and one against B. Defeated; one in favor and four against C. Accepted; three in favor and two against D. Defeated; two in favor and three against