Which of the following is not consistent with the basic postulate of economics that incentives matter?
a. Farmers produce fewer bushels of wheat in response to an increase in the price of wheat.
b. A politician votes against a proposal because most of his constituents oppose it.
c. People drive less because of higher gas prices.
d. People buy more milk in response to a reduction in the price of milk.
A
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Which of the following statements is NOT true about using per capita real GDP to measure a nation's economic growth?
A) The definition does not indicate how the increase in growth is being disturbed among the nation's population. B) The definition assumes that some of the increase in productivity goes to the poor. C) The definition is not perfect for measuring increases in a nation's productive capacity. D) The definition has understated actual economic growth because it does not take into consideration changes in leisure.
It has been observed that a change in monetary policy in the United States
A) has little or no effect on foreign markets. B) leads to corresponding changes in other countries. C) has only short run influences. D) impacts net exports.
Which of the following must be true if average total costs are declining?
a. Marginal cost is less than average total cost. b. Marginal cost is less than average variable cost. c. Marginal cost is greater than average total cost. d. Marginal cost equals average total cost.
Suppose that television show A is much more popular than television show B. The equilibrium price for a ticket to view the taping of show A is $40 and the equilibrium price for a ticket to view the taping of show B is -$30. If free tickets are offered for the taping of both shows, it is likely that
A) there will be a shortage of tickets for show A and a surplus of tickets for show B. B) there will be a surplus of tickets for show A and a shortage of tickets for show B. C) there will be a surplus of tickets for both shows. D) there will be a shortage of tickets for both shows.