Communist countries worked on the premise that government officials were in the best position to allocate the economy's scarce resources
a. True
b. False
Indicate whether the statement is true or false
True
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A transfer payment is a sum of money
A. spent by government for new goods and services. B. shifted between members of a household. C. given by government without a good or service in exchange. D. moved between companies for goods and services. E. required to pay taxes.
A positive demand shock will
a. shift the AD curve to the left. b. increase real GDP and the price level in the short run. c. decrease real GDP and the price level in the short run. d. increase real GDP and decrease the price level in the short run. e. decrease real GDP and increase the price level in the short run.
Linda earned an income of $3,000 per month, which has now increased to $3,500 per month. She saves 10 percent and spends the remainder on food, lodging, and other expenses. So far, she has managed to save $20,000. What are her savings per month before the increase income and after the increase in income?
What will be an ideal response?
It is estimated that a 3 percent drop in the price of Asian and European cars will decrease the demand for American cars by 0.84 percent. From this information one can conclude that:
A. the income elasticity of demand for American cars is less than 1. B. European and Asian cars are complements for American cars. C. European and Asian cars are substitutes for American cars. D. European and Asian cars are luxuries.