All else equal, compared to small-budget items such as paper towels, the price elasticity of demand for big-ticket items such as refrigerators is:
A. equal.
B. lower.
C. higher.
D. very low.
Answer: C
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The Phillips Curve implies a trade-off between
A) investment and saving. B) inflation and unemployment. C) employment and income. D) investment and government deficits.
The "old" Keynesian approach dominated macroeconomic theory until the
A) 1930s. B) late 1950s. C) late 1960s. D) early 1980s.
Which of the following is the best example of "what goods and services should be produced?"
A) the use of a capital intensive versus a labor intensive process of manufacturing textiles B) the production of SUVs versus the production of sub-compact cars C) the manufacturing of computer workstations in China or in India D) the leasing versus the purchasing of new capital equipment
Households and firms pay taxes to the government to:
a. increase their consumption spending. b. finance the country's import bill. c. increase their savings. d. improve their standard of living. e. finance government expenditures.