Refer to Figure 11.1. Assume the economy is in equilibrium at 1 = 0. Other things equal, a surge in household wealth will result in a movement from point ________ to point ________
A) A; B
B) B; A
C) A; C
D) A; D
C
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Disposable income is best defined as
a. income adjusted for inflation b. nominal income c. the income remaining after bills have been paid d. income after taxes have been paid and transfers received e. income paid in dollars that are worthless
A monopoly restricts output and charges a higher price than other types of firms
a. True b. False Indicate whether the statement is true or false
Economic goods are items that
A. are used only by economists. B. provide satisfaction to users. C. individuals would pay to get rid off. D. cannot be sold at any price in the market.
The United States' balance of payments is likely to improve when
A. there is an increase in political instability in other countries. B. American people want to invest more in foreign countries. C. the American government increases its spending on foreign aid. D. the inflation rate in the United States rises relative to other countries.