People acting in their own self interest is the basis of the:
A. principle of supply and demand.
B. principle of voluntary exchange.
C. real-nominal principle.
D. principle of scarcity.
Answer: B
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A util is a single unit of:
A) the measure of income. B) the measure of savings. C) the measure of satisfaction. D) the measure of expenditure.
________ in the expected future domestic exchange rate causes the demand for domestic assets to shift to the right and the domestic currency to ________, everything else held constant
A) An increase; appreciate B) An increase; depreciate C) A decrease; appreciate D) A decrease; depreciate
If the Mexican economy is using all of its available resources to produce goods, it means that the Mexican economy is producing at a point
a. located at one of the endpoints of the production possibilities curve b. beyond (exterior to) its production possibilities curve c. on its production possibilities curve d. inside (interior to) its production possibilities curve e. closer to the origin than its production possibilities curve
Suppose that a $4 billion increase in government spending increases Real GDP by $60 billion, and that a $3 billion tax reduction increases Real GDP by $68 billion. In this situation, the tax multiplier is _______________ the government spending multiplier
A) less than B) greater than C) equal to D) none of the above