Assume consumers eat either rice or pasta for dinner every night. If the price of rice increases, then one would expect to see:
A. an increase in the quantity of pasta demanded.
B. a decrease in the demand for pasta.
C. a decrease in the quantity of pasta demanded.
D. an increase in the demand for pasta.
Answer: D
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If the number of people unemployed is 100, the number of people employed is 1000, and the working-age population is 1400, then the unemployment rate is
A) 6.6 percent. B) 10 percent. C) 9.1 percent. D) 7.1 percent.
In the figure above, the lowest 20 percent of all households receive ________ percent of all income, the next lowest 20 percent receive ________ percent of all income and the richest 20 percent receive ________ percent of all income
A) 20; 20; 20 B) 20; 40; 100 C) 10; 20; 40 D) 10; 10; 40
How do we calculate the effects of real GDP on consumption expenditure and imports by using the marginal propensity to consume and the marginal propensity to import?
What will be an ideal response?
A tax has an excess burden whenever
A. people are unable to alter their behavior to avoid paying it. B. government seeks to raise it. C. it raises a great deal of revenue. D. it induces people to change their behavior.