People generally purchase less of a commodity as its price increases. This implies that the relationship between quantity purchased and the price of the commodity must have a
A. slope always equal to one.
B. positive slope.
C. zero slope.
D. negative slope.
Answer: D
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According to the Ricardo-Barro effect, government deficits
A) lead to a rise in the equilibrium real interest rate, crowding out investment. B) lead to simultaneous increases in private saving and no effect on the equilibrium real interest rate and investment. C) lead to simultaneous decreases in private saving and decreases in the equilibrium real interest rate and investment. D) lead to a fall in the equilibrium real interest rate and a rise in investment.
A decrease in the unemployment rate may be represented as a movement from a point inside the production possibilities frontier to a point on the frontier
Indicate whether the statement is true or false
Foreign purchases of stocks and bonds issued by U.S. corporations ________ between 1995 and 2007 and ________ in 2014
A) decreased slightly; increased slightly B) increased at a slow but steady pace; increased dramatically C) remained stagnant; declined sharply D) increased dramatically; declined
Which of the following statements is a normative as opposed to a positive economic statement?
A) Consumer spending generates more jobs. B) If the price of gasoline goes up, people buy less. C) Labor unions should be allowed to organize in every industry. D) Government intervention in markets is common in many countries.