When prices do not change very much, the income-expenditure model can be used to understand economic fluctuation in the
A) long run. B) fiscal year.
C) short run. D) federal budget allocation.
C
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All economic questions and problems arise from
A) turmoil in the stock market. B) the difference between self-interest and social interest. C) the fact that society has more than it needs. D) a society's wants exceeding what its scarce resources can produce. E) the unequal distribution of income.
There are several reasons why incomes are unequal, including differences in luck, experience, and schooling
a. True b. False Indicate whether the statement is true or false
Suppose a firm uses only capital and labor to produce output. When the firm doubles the amount of both inputs, output increases by less than double. This firm exhibits:
A. increasing returns to scale. B. decreasing returns to scale. C. constant returns to scale. D. diminishing marginal returns.
The average price level is measured by
a. the price of oil. b. the rate of inflation. c. the nominal interest rate. d. the GDP deflator or the CPI.