Policymakers who influence aggregate demand can potentially mitigate the severity of economic fluctuations
a. True
b. False
Indicate whether the statement is true or false
True
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A government-set price floor on a product
A. is intended to benefit the buyers of the product. B. will attract more resources towards the production of the product. C. does not interfere with the rationing function of price in a market system. D. will drive resources away from the production of the product.
The table below gives the quantities and prices for 2000 and 2010 for an economy that produces just two goods: sailboats and coconuts. Quantity producedPrice 2000201020002010Sailboats1020$500$525Coconuts2,0002,400$1$2For this economy that produces just sailboats and coconuts, and with 2000 is the base year, real GDP was approximately ______ times larger in 2010 than it was in 2000.
A. 1.34 B. 1.77 C. 1.65 D. 2.19
A circular flow model shows the interrelationship between the ________ market and the ________ markets
A) household; goods B) household; factor C) business; household D) expenditure; income E) goods; factor
A Tiebout model involves
A. completely mobile individuals. B. governments generating no externalities. C. perfect information. D. all of these answer options are correct.