Assume the price of good X increases. As a result, your real income decreases and you decrease the quantity of good X purchased each month. This is an example of the:
a. income effect.
b. consumer price effect.
c. revenue effect.
d. substitution effect.
e. all of these.
a
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Assume that the government is considering different policies to increase total expenditures in order to reduce unemployment. Which of the following would achieve this objective?
a. decreasing taxes b. increasing government spending c. increasing transfer payments d. All of the above are correct.
Refer to the graph shown. The cost of 5 units of labor and 6 2/3 units of machines is the same as the cost of:
A. 5 units of labor and 10 units of machines. B. 15 units of labor and 2 units of machines. C. 10 units of labor and 10 units of machines. D. 7.5 units of labor and 5 units of machines.
Which of the following statements about the importance of trade to the U.S. economy is true?
A) Overall, about 80 percent of U.S. manufacturing jobs depend directly or indirectly on exports. B) The United States is the second largest exporter in the world. C) The U.S. economy is highly dependent on international trade for growth in its gross domestic product. D) Since 1950, both exports and imports have steadily decreased as a fraction of U.S. gross domestic product.
For players in a repeated-play game to achieve cooperation:
A. the players must reach an explicit agreement to cooperate. B. the players need not explicitly state an agreement to cooperate, but must publicly display a commitment strategy. C. there is no need to enter into public commitment strategies or explicit agreements. D. there is no need for players to collude.