Inventory accumulation occurs whenever
a. output is less than spending.
b. output exceeds spending.
c. investment exceeds saving.
d. a deficit budget occurs.
b. output exceeds spending.
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Gene plays another hour of computer games rather than study for the hour even though he knows that the next day, when he takes his test, he will regret his decision. Gene is showing ________
A) the endowment effect B) bounded rationality C) bounded self-interest D) bounded will power
Both Arnold and Will work 10 hours a day. Arnold can produce six baskets of goods per hour while Will can produce four baskets of the same goods per hour. It follows that Arnold's
a. productivity is greater than Will's. b. output is greater than Will's. c. standard of living is higher than Will's. d. All of the above are correct.
According the Keynesian macroeconomic model, which of the following was responsible for starting the Great Depression?
A) too little private spending B) too little government spending C) high taxes D) decreases in the quantity of money E) decreases in technology
An increase in the exchange rate value of the U.S. dollar, relative to the Japanese yen, will cause U.S. imports from Japan to
a. increase and exports to Japan to decrease. b. increase and exports to Japan to increase. c. decrease and exports to Japan to decrease. d. decrease and exports to Japan to increase.