If your income goes up by 2% and, in response, the quantity demanded of good x rises by 3%, good x can be considered
a. An inferior good
b. A normal good
c. A public good
d. A private good
b
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In a two-period model, holding everything else constant, an increase in current taxes
A) unambiguously increases the current account surplus. B) unambiguously decreases the current account surplus. C) has an uncertain effect on the current account surplus. D) has no effect on the current account surplus, as long as Ricardian equivalence holds.
Which of the following statements is not true about a market system?
a. The market system provides an incentive to consumers to acquire purchasing ability. b. The market system magnifies the problem of scarcity of goods and services. c. The market system provides an incentive for allocating resources. d. The market system provides an incentive to improve the quality of goods produced. e. The market system provides everything everyone wants to consume.
Turkey joined the European Union (EU) in 2007 after implementing the necessary political and economic policy changes.
Answer the following statement true (T) or false (F)
The horizontal intercept of the budget line is:
A. M/PY. B. -PX/PY. C. M/PX. D. PYY.