The demand curve illustrates the fact that consumers tend to purchase:
A. more of a good as their incomes rise.
B. more of a good as its price falls.
C. name-brand products more frequently than generic products.
D. more of a good as it becomes more popular.
Answer: B
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George is offered an investment option by his friend. He asks George for $6,900 and offers to repay him $12,990 after a period of ten years
George considers investing his money in his friend's project; however, the bank in his community offers an annual rate of interest of 9% on every deposit. Which do you think is the better investment option for George?
The rule of equating marginal benefit with marginal cost is proper for economics, but it does not describe the way in which people make non-economic decisions.
Answer the following statement true (T) or false (F)
The commodity substitution bias is that
A) consumers decrease the quantity they buy of goods whose relative prices rise and increase the quantity of goods whose relative price falls. B) consumers substitute more expensive goods for less expensive goods when technology advances. C) government spending is a good substitute for investment expenditures. D) national saving and foreign borrowing are interchangeable. E) consumers substitute high-quality goods for low-quality goods.
The original (1958 ) Phillips curve differed from the Samuelson-Solow Phillips curve in that
A) the former was based on American data, while the latter was based on British data. B) the former measured price inflation rates, while the latter used wage inflation rates. C) the former was based on British data, while the latter was based on American data. D) the former measured nominal GDP, while the latter used Real GDP. E) a and b