Etienne’s government encourages its citizens to consume almost all their incomes. What will most likely be the result of this policy?
a. fluctuating economic growth
b. little economic growth
c. steady economic growth
d. rapid economic growth
b. little economic growth
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The real cost of owning a home includes certain costs/expenses that many people overlook. Which of the following is NOT such a cost/expense of home ownership?
A) Income lost on cash invested in the home B) Interest paid on borrowed capital C) Maintenance and repair expenses D) Personal property taxes
Clothing retailers have faced greater competition in recent years as more firms have entered the clothing market. Some of the competition has come from foreign competitors, but much of it is domestic competition. As a result there is much competition in markets for many types of clothing and
A. individual buyers and sellers cannot affect the market price because it is determined by the market forces of demand and supply. B. there are relatively few buyers and sellers in the market, and one individual firm can determine the market price. C. firms have a great degree of flexibility in pricing their products because these products can be sold at a high profit level. D. there are no other implications.
Suppose you withdraw $500 from your checking account deposit and bury it in a jar in your back yard. If the required reserve ratio is 10 percent, checking account deposits in the banking system as a whole could drop up to a maximum of
A) $0. B) $50. C) $500. D) $5,000.
If the cross price elasticity of two goods is -3.5, then
A) these two products are relatively elastic substitutes. B) these two products are relatively inelastic substitutes. C) these two products are relatively elastic complements. D) these two products are relatively inelastic complements.