Assume there is a surplus in the market for hybrid automobiles. Which of the following statements correctly describes this situation?
A) The price of hybrid automobiles will fall in response to the surplus; as the price falls the quantity demanded will increase and the quantity supplied will decrease.
B) Some consumers will be unable to obtain hybrid automobiles at the market price and will have an incentive to offer to buy the product at a higher price.
C) The supply of hybrid automobiles is greater than the demand for hybrid automobiles.
D) The surplus will cause an increase in the equilibrium price of hybrid automobiles.
A
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Which of the following types of income are subject to FICA taxes?
A. Interest earned on checking accounts B. Business profit from the self-employed C. Inheritance D. Profits earned from dividends
Subtracting government investment from government purchases gives us the amount of government
A) outlays. B) primary expenditures. C) secondary spending. D) consumption expenditures.
Keynes's analysis of the Great Depression led to which of the following recommendations regarding government policy?
A. An annually balanced budget B. A decrease in government spending C. An increase in government spending D. An increase in taxes
Saving is NOT a problem in the classical model because
A. saving would be spent by consumers eventually. B. interest rates are flexible, and savings were channeled into investment. C. the classical economists assume that saving was beneficial to people for retirement. D. savers and investors are the same people.