In response to a temporary increase in government spending, the representative consumer consumes
A) more and takes more leisure.
B) more and takes less leisure.
C) less and takes more leisure.
D) less and takes less leisure.
D
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Joey's lawncutting service recently traded in its push mowers for gasoline-powered mowers. Joey still requires one worker per lawnmower; however, more grass is now cut in the same amount of time as before. This is an example of
A) labor-saving technical change. B) non-neutral technical change. C) neutral technical change. D) organizational change.
One of the basic trade-offs inherent in designing a tax system is between:
A. surplus and revenues. B. supply and demand. C. efficiency and equity. D. price and quantity.
A consumer's budget line will rotate outward along the horizontal axis if:
a. the price of the good on the horizontal axis decreases. b. the price of the good on the vertical axis increases. c. the price of the good on the horizontal axis increases. d. the consumer's income decreases.
The central bank of a country had, for a time, focused so strongly on reducing inflation that the level of unemployment increased beyond control. Currently, the central bank focuses so strongly on controlling unemployment that the inflation rate has increased. The main problem faced by the central bank is _____
a. it only focuses on a single factor b. it overestimates the inflation rate c. it does not consider the presence of disguised employment d. it is easily influenced by large business houses