Which of the following is the best definition of economics?
a. An investigation of the quantities and prices of the various goods produced by the nations of the world.
b. A study of why inflation and unemployment periodically plague the U.S. economy.
c. An analysis of how individuals and societies deal with the problem of scarcity.
d. An examination of the role that money plays in the economy.
e. A study of how goods and services are distributed throughout the world.
C
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If total output increases from $1 trillion to $2 trillion as population increases from 100 million to 200 million, then output per person:
A. remains constant. B. doubles. C. decreases D. increases, but by less than 100 percent.
Discounting involves dividing next-period income by ________
A) one plus the real rate of interest B) the nominal rate of interest C) current income D) the real rate of interest
Is it proper to say corporations pay taxes? Why or why not? How does the allocation of the corporate income tax burden change from the short to the long run?
What will be an ideal response?
An increase in the real interest rate would cause an increase in the real demand for money
A. no matter what the change in expected inflation. B. if expected inflation fell by less than the rise in the real interest rate. C. if expected inflation fell by more than the rise in the real interest rate. D. if expected inflation fell by the same amount as the rise in the real interest rate.