John believes that when the price of a good increases people will purchase more of the good. This statement is
A) consistent with the law of demand.
B) inconsistent with the law of demand.
C) referring to money prices.
D) consistent with the law of supply.
B
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If the value of the government multiplier is 1.5, which of the following is likely to be true if all other variables remain unchanged?
A) A $1 increase in government expenditure reduces gross domestic product by $1.50. B) A $1.50 increase in government expenditure increases gross domestic product by $1.50. C) A $1.50 increase in government expenditure reduces gross domestic product by $1.50. D) A $1 increase in government expenditure increases gross domestic product by $1.50.
The above table gives the total utility that Homer obtains from consuming various quantities of chocolate chip cookies. The marginal utility from the fifth pound of cookies is
A) 1. B) 2. C) 3. D) 15.
The application of statistical methods to empirical questions in economics is known as
A. positive economic analysis. B. normative economic analysis. C. the scientific method. D. econometrics.
If a cyclical surplus exists, the economy must be:
A. experiencing deflation. B. at potential income. C. above potential income. D. below potential income.