When policymakers impose price controls, they
a. are usually following the advice of mainstream economists.
b. usually improve the efficiency of economic activity.
c. distort the signals that normally guide the allocation of resources.
d. demonstrate a willingness to sacrifice equity in order to improve efficiency.
C
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If the exchange rate falls from 120 yen per dollar to 110 yen per dollar, the dollar has depreciated
Indicate whether the statement is true or false
To calculate the growth rate of a variable, you will
A) calculate the percentage change from one time period to the next. B) calculate the difference between the two variables. C) add the ending value to the beginning value. D) divide the increase by the number of time periods.
If Mr. Smith thinks the last dollar spent on shirts yields more satisfaction than the last dollar spent on cola, and Smith is a utility-maximizing consumer, he should
a. decrease his spending on cola. b. decrease his spending on cola and decrease his spending on shirts. c. decrease his spending on shirts. d. increase his spending on cola and decrease his spending on shirts.
Exhibit 11-1 Disposable income and consumption data Income (Y) Change inDisposable Income Consumption (C) 0 500 1,000 1,000 1,400 2,000 1,000 2,200 3,000 1,000 2,900 4,000 1,000 3,500 5,000 1,000 4,000 In Exhibit 11-1, when disposable income is increased from $2,000 to $3,000 to $4,000,
A. total consumption increases by $1,000. B. the marginal propensity to consume remains constant. C. the marginal propensity to consume decreases from 0.7 to 0.6. D. the marginal propensity to consume decreases from 0.8 to 0.7.