If your income elasticity of demand for hot dogs is negative, then:
A. hot dogs are an inferior good for you.
B. your demand curve for hot dogs is not downward sloping.
C. hot dogs have no close substitutes for you.
D. you must not enjoy eating hot dogs.
Answer: A
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Alicia makes the statement that everytime she eats chocolate, it gives her acne. By ignoring the possibility that there may be another factor that causes Alicia to eat chocolate and which also causes her acne, Alicia is commiting the
a. fallacy of composition b. fallacy that association is causation c. fallacy of segmentation d. mistake of ignoring secondary effects e. mistake of looking beyond the obvious
The main source of revenue for the U.S. federal government is
a. personal income taxes b. corporate income taxes c. sales taxes d. borrowing on financial markets e. revenue from the sale of government goods and services
Adam Smith said to never attempt to make at home what it will cost more to make than to ____________.
Fill in the blank(s) with the appropriate word(s).
Answer the following statements true (T) or false (F)
1) The interest-rate effect is one of the determinants of aggregate demand. 2) The real-balances effect indicates that inflation makes the public feel wealthier and they therefore spend more out of their current incomes. 3) Other things equal, an increase in productivity will shift the short-run aggregate supply curve rightward. 4) In the immediate short run, both input and output prices are fixed. 5) An increase in wealth from a substantial increase in stock prices will move the economy along a fixed aggregate demand curve.