Other things held constant, the greater the price of a goodÂ
A. the greater the consumer surplus.
B. the lower the quantity demanded.
C. the lower the consumer surplus.
D. the higher the quantity demanded.
Answer: C
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India's government runs a government budget surplus. If there is no Ricardo-Barro effect, the surplus means that the
A) private supply of loanable funds curve lies to the left of the supply of loanable funds curve. B) private demand for loanable funds curve lies to the left of the demand for loanable funds curve. C) private supply of loanable funds curve is the same as the supply of loanable funds curve. D) private supply of loanable funds curve lies to the right of the supply of loanable funds curve. E) None of the above answers is correct.
The government decided to reduce taxes on fast-food to increase revenue. The government assumes that fast-food products have
a. An inelastic demand b. An elastic demand c. A demand curve that is upward sloping d. Unitary elastic demand curve
An increase in the costs of production will cause the:
A. short-run aggregate supply curve to shift to the right. B. aggregate demand curve to shift to the right. C. short-run aggregate supply curve to shift to the left. D. long-run aggregate supply curve to shift to the left.
The issue of fairness versus efficiency arises
A. only in a command economy. B. only in a market economy. C. in neither a command nor a market economy. D. in both a command and a market economy.