If personal income taxes are increased, disposable income and consumption
A. increase.
B. stay the same.
C. decrease.
D. change in an unpredictable direction.
Answer: C
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An increase in the interest rate results in
A) a smaller opportunity cost of investment and so planned investment spending decreases. B) a greater opportunity cost of investment and so planned investment spending increases. C) a greater opportunity cost of investment and so planned investment spending decreases. D) a smaller opportunity cost of investment and so planned investment spending increases.
The soft drink industry can best be described as:
A) an oligopoly. B) a monopoly. C) perfectly competitive. D) monopolistically competitive.
The rate at which a consumer is willing to trade off one good for another is called the __________
Fill in the blank(s) with correct word
Suppose a U.S.-made machine costs $500 and the exchange rate is 100 yen = $1. Now the exchange rate changes to 90 yen = $1. Then the machine would now cost
A. more dollars. B. the Japanese citizen less yen. C. fewer dollars. D. the Japanese citizen more yen.