The aggregate demand curve
a. is identical to the AE curve.
b. shows the amounts of real output that will be demanded at various price levels.
c. shows the amount of real output that will be demanded at various levels of income.
d. shows the amount of income that will be earned at various price levels.
b. shows the amounts of real output that will be demanded at various price levels.
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The demand for a resource is derived from the consumer demand for the good or service produced by the resource
a. True b. False
One result of asymmetric information in the market for bank loans is that
a. few loans are offered b. few bad loans are made c. more bad loans than good loans may be made d. lenders benefit at the expense of borrowers e. the interest on good loans will be higher than otherwise
An example of an explicit cost for the owner of a tattoo parlor would be the wages that she could earn if she worked as a graphic artist for an advertising agency
a. True b. False Indicate whether the statement is true or false
When the government reduces my income tax by $0.30 for every $1.00 that I contribute to a charity, the government is effectively
a. alleviating the negative externalities that are associated with charitable giving. b. imposing a negative externality on those who do not pay income taxes. c. encouraging a private solution to a positive-externality problem. d. encouraging a private solution to a negative-externality problem.