Which of the following is false? Critics of the ISLM framework have stated that
A) there is no linkage between flow and stock concepts.
B) the interest rate is the only mechanism through which monetary policy operates.
C) money is not a substitute for physical assets.
D) velocity is assumed to be constant.
D
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A $2.00 increase in the size of a tax on a good will only cause the price for buyers to increase by $2.00 if
A) demand is perfectly inelastic. B) demand is perfectly elastic. C) demand is unit elastic. D) demand is inelastic, but not perfectly inelastic. E) demand is elastic, but not perfectly elastic.
Kelly's marginal utilities for magazines and packages of gummy bears are listed in the table above. What is the extra utility received by Kelly when she decides to consume 3 packages of gummy bears instead of 2 packages?
A) 20 B) 160 C) 180 D) 540
Which of the following are included in GDP?
a. Traffic congestion b. Crime c. Pollution d. Underground economic activity e. None of the above
Economic policy that appears to be ideal in an economics textbook may not be the final policy that is approved by elected politicians because
a. sometimes a politician's self interest may conflict with the national interest. b. economics professors have a notoriously low voting rate. c. only policies advocated by the President's Council of Economic Advisors receive enough national attention to interest politicians. d. Economists cannot explain why politicians do not implement the ideas from their textbooks.