Suppose Congress and the President are negotiating over whether to increase spending on defense or higher education, economists would suggest that they set the amount of spending
A. where the total benefit to each is equal.
B. on each program.
C. constant.
D. where the average amount spent per student equals the average amount spent per soldier.
Answer: B
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Since 1900, real GDP per capita has ________ and this measure ________ the actual growth in standards of living in the United States over this time
A) increased; overstates B) decreased; understates C) increased; understates D) decreased; overstates
In the U.S. the number of households is:
a. Growing b. Staying the same c. Decreasing slowly d. Decreasing at a fast rate
If pretzels are a normal good, the income effect of a price change means that
a. as income increases, the quantity demanded increases along the demand curve for pretzels b. as income increases, the demand curve for pretzels shifts rightward c. as income increases, the demand curve for pretzels shifts leftward d. as the price of pretzels increases, the real income of individuals who demand pretzels decreases, so the quantity demanded of pretzels decreases e. as the price of pretzels increases, income increases
If a firm offers quantity discounts or special promotional allowances only to favored distributors and the effect is to substantially lessen competition, then it is in violation of the:
A. Clayton Act. B. Robinson-Patman Act. C. Sherman Antitrust Act. D. Celler-Kefauver Act.