The paradox of thrift suggests that when households intend to save more, they will ________ consumption, which will ultimately lead to ____________ aggregate saving.
a) decrease; lower
b) decrease; higher
c) increase; lower
d) increase; higher
Ans: a) decrease; lower
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Suppose the inverse supply curve in a market is Q = 6p2. What is the producer surplus when price is equal to 4?
A) 96 B) 128 C) 28 D) 48
Which of the following statements best describes one of the schools of thought regarding the “new economy” controversy?
a. Increased military spending post-9/11 has contributed to the growth in U.S. productivity. b. Extraordinary advances in communications and information technology have contributed to the growth in U.S. productivity. c. The increase in immigration has contributed to the growth in U.S. productivity. d. The aging U.S. population has contributed to the growth in U.S. productivity.
If Japan is twice as good at producing cameras and three times as good at producing TV sets as the United States, Japan is said to have a comparative advantage in TV sets and the United States has a comparative advantage in cameras.
Answer the following statement true (T) or false (F)
Suppose the quality of service provided by a newly regulated firm begins to deteriorate soon after regulation is enforced. Which of the following types of regulation is most likely being used?
A. Output regulation. B. Social regulation. C. Profit regulation. D. Price regulation.