If the government borrows money to finance additional spending when the economy is operating at full capacity, then we would expect
A. interest rates to rise and prices to fall.
B. interest rates to fall and prices to rise.
C. neither interest rates nor prices to rise.
D. both interest rates and prices to rise.
Answer: D
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For the Fall semester, you had to pay a nonrefundable fee of $600 for your meal plan, which gives you up to 150 meals. If you eat 100 meals, your average cost for a meal is:
A. $5. B. $4. C. $0.25. D. $6.
By the permanent-income hypothesis, the long-run marginal propensity to consume is
A) j. B) k. C) kj. D) k - j. E) k/j
Scarcity and shortages differ in that
A) scarcity is caused by natural disasters and shortages are caused by mistakes people make. B) scarcity is a condition of human life while shortages are usually temporary phenomena related to an imbalance between the amount desired and the amount produced. C) scarcity is a type of shortage but shortage is a broader concept. D) shortages apply to resource markets while scarcity applies to product markets.
Refer to the information provided in Scenario 36.5 below to answer the question(s) that follow.SCENARIO 36.5: The tiny nation of Bugaboo consists of two virtually identical islands, Achoo and Zoink, separated by the Strait of Dingo. The islands are similar in geography and population. The only telephone service on the islands is cellular, and the only cellular provider on the islands is the government-owned Bugaboo Communications Company, which charges a standardized rate of 20 Bugabucks per minute. Both islands add on an additional $5 Bugabucks-per-minute usage tax. As a way to increase revenue, the island governor of Zoink decided to increase the usage tax to $10 per minute, effective January 1, 2017. The average monthly cellphone usage per month is listed in the table below.?Average
Monthly Telephone Use per Resident (minutes)Island20162017Achoo4,5005,150Zoink4,8005,225Refer to Scenario 36.5. The total cost of telephone service for residents of Achoo in 2016 is ________ Bugabucks. A. 4,500 B. 22,500 C. 90,000 D. 112,500