Economists must actually measure the utilities of goods to determine demand
Indicate whether the statement is true or false
F
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Individuals base their demand for an asset on
A) the expected return the asset offers compared with the returns offered by other assets. B) the riskiness of the asset's expected return. C) the asset's liquidity. D) the expected return, how risky that expected return is, and the asset's liquidity. E) the aesthetic qualities of the asset.
The big current-account deficits in the late 1880s and early 1890s were financed primarily by
(a) Borrowing from other nations, especially England (b) Interests earned on bonds and dividends paid on other investments (c) Taxes (d) Sale of public land
Suppose the market for grass seed can be expressed as:
Demand: QD = 100 - 2p Supply: QS = 3p If government imposes a $5 specific tax to be collected from sellers, what is the price consumers will pay? How much tax revenue is collected? What fraction is paid by sellers?
When the economy's actual price level exceeds the expected price level in the short run: a. the real wages of workers decline
b. the nominal wages of workers increase. c. firms decrease output below the potential level. d. the economy produces the natural rate of output. e. cyclical unemployment in the economy falls to zero.