Consider the following game. You roll a six-sided die and each time you roll a 1, you get $50. For all other outcomes you pay $10. The expected value of the game is
A. -$10.
B. $0.
C. $10.
D. $50.
Answer: B
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The aggregate demand curve:
A. shows the price level on the horizontal axis and output on the vertical axis. B. shows the relationship between the overall price level and the level of total demand. C. shows the relationship between the price of goods and services and the level of total demand. D. is upward-sloping, which is counter to the individual demand curve.
If the slope of a curve is 1/3, we know that
A. the relationship is non-linear, and the line moves from lower left to upper right. B. the relationship is linear, and the line moves from upper left to lower right. C. the relationship is linear, and the line moves from lower left to upper right. D. the relationship is non-linear, and the line moves from upper left to lower right.
When there are more substitutes for a product, the ________ for the product is ________.
A. income elasticity; greater B. demand; less price elastic C. income elasticity; smaller D. demand; more price elastic
The quantity theory of money asserts that inflation is the result of growth in
A) the quantity of money. B) potential GDP. C) the natural rate of unemployment. D) money wage rates.