Stagflation can be defined as a situation characterized by
a. rising prices and rising output.
b. rising prices and falling output.
c. falling prices and falling output.
d. falling prices and rising output.
b
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Assume the price of Coca-Cola increases. As a result, your real income decreases and you decrease the quantity of Coca-Cola purchased each month. This is an example of the:
a. income effect. b. consumer price effect. c. revenue effect. d. substitution effect.
According to the quantity theory of money, if there are fewer dollars available to spend on the same number of goods and services, then:
A. the price level will fall. B. the price level will rise. C. output will decrease. D. output will increase.
Which of the following describes an external benefit resulting from an individual's purchase of a winter flu shot? a. A flu shot is less expensive than the cost of treatment when you get the flu
b. The income of doctors increases when you get a flu shot. c. A flu shot reduces the likelihood that others will catch the flu from you. d. A flu shot reduces the likelihood that you will miss work as a result of sickness, and, therefore, you will earn more income.
High-income families pay a significantly greater percentage of their income in taxes compared to low-income families.
Answer the following statement true (T) or false (F)