When a person receives an increase in wealth, what is likely to happen to consumption and saving?
A. Consumption decreases and saving decreases.
B. Consumption decreases and saving increases.
C. Consumption increases and saving increases.
D. Consumption increases and saving decreases.
Answer: D
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Pollution problems generally represent
A) cases of good versus evil. B) cases of villain versus victim. C) morally neutral disagreements over competing uses of a scarce resource. D) Both a and b are correct.
In a recession, automatic stabilization ________ tax revenues and ________ the debt-GDP ratio
A) lowers, raises B) lowers, lowers C) raises, raises D) raises, lowers
Decision making that seeks only solutions that are acceptable is called
A. optimizing. B. satisficing. C. benchmarking. D. maximizing.
The use of money is more efficient than barter because the introduction of money
A. reduces the need for economic specialization. B. reduces the need to exchange goods. C. reduces transaction costs. D. reduces the need for other stores of value.