If the consumption function is given by C = 200 + 0.6YD, then an increase in taxes of 50 units will cause the IS schedule to
a. shift to the right by 75 units..
b. shift to the left by 50 units.
c. shift to the left by 75 units.
d. shift to the left by 125.
C
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In the current international monetary system, what is the role for gold?
a. The system is a gold-exchange standard, based on a fixed value for a key currency. b. Gold backs each currency, and therefore, the system as a whole. c. It serves as the principal reserve asset. d. It has no role.
In the short run, a firm operating in a competitive industry will shut down if price is
a. less than average total cost. b. less than average variable cost. c. greater than average variable cost but less than average total cost. d. greater than marginal cost.
Identify two reasons why an individual's labor supply curve is typically upward-sloping.
What will be an ideal response?
If a country has the ability to produce a specific good with fewer resources than other countries, then it has:
A. A comparative advantage. B. A trade surplus. C. Favorable terms of trade. D. An absolute advantage.