According to the convergence hypothesis, as the rate of technological adoption rises in poorer countries,
A. the gap between rich and poor countries increase.
B. income inequality rises.
C. the flow of net exports can be reduced.
D. the gap between wealthy and poor countries close.
Answer: D
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Which of the following would shift the aggregate demand curve to the right?
a. An increase in government purchases b. An increase in investment spending c. An open market purchase of bonds by the Fed d. All of the above e. None of the above
The horizontal summation of individual demand curves gives the market demand curve for a public good
a. True b. False Indicate whether the statement is true or false
What would happen if you decreased the price to $2 and decreased the quantity supplied to 4,000 pounds?
a. You would create a shortage.
b. You would maintain the same surplus.
c. You would reach equilibrium.
d. You would reduce the surplus.
Which of the following, if true, would most effectively back the argument that raising cigarette taxes reduces the number of people who smoke cigarettes?
A. The supply for cigarettes is relatively elastic. B. The demand for cigarettes is relatively elastic. C. The supply for cigarettes is relatively inelastic. D. The demand for cigarettes is relatively inelastic.