The concept of "demand" in economics refers to
A) the different quantities of a good or service people will buy at different possible prices.
B) the different types of goods and services that people of different income levels want to buy.
C) how changes in the prices of all goods affect people's buying behavior.
D) changes in people's consumption behavior over time.
Answer: A
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New growth theory assumes that
A) all inputs experience diminishing returns. B) only random technological advances produce growth. C) knowledge does not experience diminishing returns. D) None of the above answers is correct.
Explain how a price floor set above the equilibrium market price for a good can cause a surplus of that good
What will be an ideal response?
According to the new classical theory, economic policies are effective
A. only if they are formed with rational expectations. B. only if they are unanticipated. C. only if they are expansionary in nature. D. only if they are anticipated.
According to the circular flow of income and output, which of the following is not true?
A. Total income and total output must be equal. B. Goods and services flow in one direction and money payments flow in the other direction. C. In every economic? transaction, the seller receives exactly the same amount that the buyer spends. D. ?Goods, services and money all flow in one direction since money pays for the goods and services.