Which of the following is a characteristic of economics?
A. the way society deals with people's needs
B. the focus on how people behave not in their own self-interest
C. allocation of limited resources in an effort to satisfy potentially unlimited wants
D. all of these
Answer: C
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How would you interpret (1) an upward sloping curve and (2) a zero slope curve in a two variable diagram?
What will be an ideal response?
In a Lorenz curve, perfect income equality is represented by
A) a vertical line. B) a horizontal line. C) a rectangular hyperbola. D) a 45-degree line originating from the origin.
Aluminum Aces dumps wastewater into a creek they have owned for decades. The new neighbor, Ms. Franklin, has tried to grow bamboo along the creek where it enters her property, but the wastewater kills about $1,000 worth of her bamboo each year. She offers Aluminum Aces $600 per year to add a new filter, which costs $400, to their system so wastewater will no longer kill her bamboo. What is one characteristics of this case that fits the Coase theorem?
a. Both parties are worse off than before. b. Property rights are clearly defined. c. A positive externality is internalized. d. Transaction costs are indeterminable.
According to Keynes, aggregate supply and aggregate demand will be equal only if
A. savings equals investment. B. savings exceeds investment. C. investment is larger than savings in the economy. D. is not related to the relationship between savings and investment.