Empirical evidence on the U.S. economy suggests that household spending and income have an inverse relationship
a. True
b. False
Indicate whether the statement is true or false
False
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The real return on bonds is
A) 0. B) r. C) R. D) i.
In which of the following market structures does free entry and exit play an important role in the long-run equilibrium outcome? (i) perfect competition (ii) monopolistic competition (iii) monopoly
a. (i) only b. (i) and (ii) only c. (ii) and (iii) only d. (i), (ii), and (iii)
If the San Diego Opera decreases the price of their opera tickets and their total revenue falls, then this suggests that, at the original price, the demand for tickets to the San Diego Opera was:
A. either elastic or inelastic. B. elastic. C. inelastic. D. unit elastic.
The following graph shows the production possibilities curve for the economy with only two members, Silvia and Art. Silvia can produce either 50 pounds of beef or 2 computers per week, and Art can produce 100 pounds of beef or 1 computer per week. Both of them work 40 weeks per year.
With the opportunity to trade Silvia and Art can ________ the maximum consumption of computers by ________ units.
A. increase; 160 B. increase; 40 C. decrease; 80 D. decrease; 160