During a recession, the political incentive structure will encourage politicians to
a. undertake sound economic policies that are consistent with stability and growth.
b. adopt any policies, even bad ones, that give the appearance of taking action.
c. undertake policies that promote long-term economic growth rather than short-term benefits.
d. do nothing and let the recession run its course.
B
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The law of demand states that there is a negative relationship between price and quantity demanded, ceteris paribus
Indicate whether the statement is true or false
The above table gives the demand schedule for Billy Bob's BBQ ribs. The price elasticity of demand for Billy Bob's ribs over the price range of $3 to $1 is equal to
A) 4.00. B) 2.00. C) 0.50. D) 0.25.
Households in the United States more completely smooth out expenditures on
A) durable goods and nondurable goods than on services. B) durable goods than on nondurable goods and services. C) nondurable goods and services than on durable goods. D) services and durable goods; nondurable goods.
Determinants of the marginal productivity of labor include all of the following EXCEPT
A) talent. B) education. C) experience. D) location.