What to produce in a market economy is ultimately determined by the:
A. income plans of households.
B. output decisions of business firms.
C. spending decisions of households.
D. workers' technical skills.
Answer: C
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Which of the following areas of study is included in the field of macroeconomics?
a. electricians’ wage rates b. monopolistic pricing c. price of automobiles d. general price level
At a fair carnival roulette wheel, a player can either win $10, $30, or $80 . If the player were to be made indifferent between playing the game or not, how much should the owner charge him?
a. $30 b. $40 c. $50 d. $80
Assume the price of good X increases. As a result, your real income decreases and you decrease the quantity of good X purchased each month. This is an example of the:
a. income effect. b. consumer price effect. c. revenue effect. d. substitution effect. e. all of these.
Fiscal federalism refers to
A. passing money from one level of government to another. B. leaving indirect taxes to the states. C. keeping property taxes low. D. making all levels of government operate on a “pay as you go” basis.