When (if at all) are budget deficits inflationary?
A. When AS is perfectly horizontal
B. When AS has a very steep slope
C. When AS has a downward slope
D. When AS intersects AD
Answer: B
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Refer to Resource Supply/Demand. The social gain from this resource being sold is
The following questions refer to the accompanying graph, which shows the supply and demand for a resource. The owner of the resource is receiving the price P0 and is providing the quantity Q0.
a. area A
b. area A + B
c. area A + B + C
d. area A + B + C + D
Money as defined by M1 includes
a. coins. b. paper money. c. checking deposits. d. travelers' checks. e. All of the above are correct.
The decision about whether to change prices frequently or infrequently is an application of the:
A. cost-benefit principle. B. scarcity principle. C. principle of increasing opportunity cost. D. principle of comparative advantage.
In the United States, professional football players earn much higher incomes than professional soccer players. This occurs because:
A. most football players are good soccer players while the reverse is not true. B. consumers have a greater demand for football games than for soccer games. C. football and soccer games are highly substitutable products for most consumers. D. the marginal productivity of soccer players exceeds that of football players.