What type of relationship exists between expected future income and consumption?
A. Negative
B. Positive
C. Indirect
D. Constant
B. Positive
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When the government sets a maximum price that can be charged for a good or service, it creates
A. a price ceiling. B. a price support. C. a white market. D. a price floor.
You like to sleep until 11:00 am during the semester. What is the opportunity cost of attending an 8:00 am class?
A) nothing, since you can go back to bed later B) sleep C) obtaining the notes from the 8:00 am class D) the credit hours earned from the 8:00 am class
A change in all of the following variables will change the market demand for a product except
A) the price of the product. B) population and demographics. C) income. D) tastes.
An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease