If the government does not react to a recession:
A. the economy will remain out of its long-run equilibrium indefinitely.
B. the economy will recover, but much more slowly.
C. voters and consumers are likely to be happy with less government interference.
D. the government generally doesn’t engage in any policy during a recession.
B. the economy will recover, but much more slowly.
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Last year when John graduated and received a 20 percent pay increase, the average number of restaurant meals he consumed rose from one a week to three a week. Hence his income elasticity for restaurant meals is
A) 0.50. B) -0.50. C) 5.00. D) -5.00.
Under the Dawes Act of 1887,
a. nearly 100 million acres of Indian territories were opened for public purchase. b. "squatters" rights were legally recognized. c. substantial tracts of land were granted to western railroads. d. 160 acres was granted to anyone who agreed to plant trees on at least 40 acres.
Economics: a. is a natural science like biology and chemistry
b. is a science built on survey data and declared preferences (what people say they are going to do) not on revealed preferences (how people actually behave). c. is a science concerned with reaching generalizations about human behavior, not unlike sociology or psychology. d. is concerned with predicting business conditions in the future, not with the current state of the stock market.
The answer is: "The difference between the price buyers pay for a good and the maximum or highest price they would have paid for the good." This is the definition for
A) taxes. B) producers' surplus. C) consumers' surplus. D) the sum of producers' and consumers' surpluses. E) the welfare triangle.