If macaroni and cheese is an inferior good, an increase in income will
A) not affect the demand for macaroni and cheese.
B) decrease the demand for macaroni and cheese.
C) increase the demand for macaroni and cheese.
D) create no income effect.
B
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The Congressional Budget Office estimates that the Patient Protection and Affordable Care Act (ACA) will
A) increase federal government spending by about $2 trillion over 10 years. B) cost the government significantly more than the additional taxes and fees enacted under the law will bring in. C) actually reduce government spending over a 20 year period. D) eliminate the budget deficit within 10 years.
The three main types of securities market organization are
A) primary, secondary, and tertiary markets. B) stock, money, and bond markets. C) public, private, and government markets. D) auction, dealer, and brokered markets.
Which of the following is a major problem with deflation?
A) Money loses value so rapidly that economic agents will be reluctant to hold money. B) Economic agents tend to put off purchases in anticipation of lower prices for goods and services, leading to a downward spiral in economic activity. C) Low prices for goods and services tend to result in massive shortages in most markets. D) Money supply cannot keep pace with consumption spending.
Which of the following is not held constant along a given demand curve for a good?
A. The price of substitute goods. B. Consumer's income. C. Price of the good itself (own price). D. Consumer tastes.