In the above figure, suppose the economy had been at point A and now is at B. What could have led to the movement to B?
A) a tax hike
B) an increase in government expenditures on goods and services
C) Winter storms cause factories in the north to be shut down for several weeks.
D) an increase in the money wage rates
B
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The downward slope of a demand curve
A) represents the law of demand. B) shows that as the price of a good rises, consumers increase the quantity they demand. C) indicates how the quantity demanded changes when incomes rise and the good is a normal good. D) indicates how demand changes when incomes rise and the good is a normal good. E) indicates how demand changes when the price changes and the good is a normal good.
When we study choice architecture, we recognize that people make:
A. choices that rarely maximize their well-being. B. mistakes in seemingly random ways. C. mistakes in common and predictable ways. D. choices which always maximize their well-being.
The size of the underground economy is probably large when:
A. the cost of doing business legally is low. B. bribes are often necessary to cut through bureaucratic red tape. C. taxes are low. D. All of these statements are true.
The factors of production include all goods and services produced in an economy
a. True b. False Indicate whether the statement is true or false