If other factors are held constant, an increase in the price level
A) causes desired net export spending to rise. B) causes the real value of the money to increase.
C) causes desired net export spending to fall. D) induces people to spend their money faster.
C
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Compare the outcome in a market with a single-price monopoly to that in a perfectly competitive market
What will be an ideal response?
The fact that developed countries have strong, widely attended university systems indicates that
(a) university expansion should be a development priority. (b) universities teach skills used on the job. (c) developing countries place too much stress on agriculture. (d) none of the above.
The blame for failing to address the budget deficits of the 1980s and early 1990s
a. is clearly the fault of the Republican administrations. b. is clearly the fault of the Democratic Congresses. c. is a political question rather than an economic question. d. is an economic question rather than a political question.
What term is defined as the change in the amount consumers will buy because they can buy a different product instead?
a. inferior goods b. normal goods c. income effect d. substitution effect