The law of demand refers to the:
a. decrease in price that results as more units of a product are demanded
b. increase in price that results from an increase in demand for a good of limited supply.
c. inverse relationship between the price of a good and the quantity demanded.
d. increase in the quantity of a good made available when its price increases.
c
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Suppose the tax rate on interest income is 25 percent, the real interest rate is 4 percent, and the inflation rate is 4 percent. In this case, the real after-tax interest rate is
A) 4.0 percent. B) .5 percent. C) 2.0 percent. D) 1.0 percent. E) 3.5 percent.
In a country with a working-age population of 130 million, 90 million workers are employed and 10 million workers are unemployed. What is the unemployment rate?
A) 5.0 percent B) 7.1 percent C) 7.7 percent D) 10.0 percent
Hughes and Cain (2011) suggest that an event or series of events occurring in 1763 doomed British policy. What happened?
(a) A series of oppressive taxes (b) A tightening and more rigorous enforcement of the Navigation Acts (c) A proclamation which limited trans-Appalachian settlement to lands once granted to colonists by crown approval (d) An act that gave the Quebec province all the land west of the Ohio River
Which of the following is correct?
a. The word economy comes from the Greek word for "rational thinker.". b. Economists study the management of scarce resources. c. Because economists believe that people pursue their best interests, they are not interested in how people interact. d. All of the above are correct.