Which of the following would cause a rightward shift in the AD curve?
A) an increase in the price level
B) a decrease in the price level
C) an increase in imports
D) a decrease in the quantity of money available in the economy
E) an increase in government purchases of goods and services
E
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If an American firm opens a production facility in India, the total value of the production will be included in the
A) national income of the United States. B) gross domestic product of India. C) gross domestic product of the United States. D) national income of India.
Hedge funds require large minimum investments ranging from ________ to ________ or more
A) $100,000; $1 million B) $1000; $10,000 C) $100; $1000 D) $$10,000; $25,000
Kim is paid $50,000 per year, and pays an annual income tax of 10 percent. Due to an inflation rate of 10 percent, her pay increases to $55,000, which puts her in a higher tax bracket where she must pay 20 percent. Which of the following can be said of Kim?
A. Inflation caused her to be taxed more heavily and decreased her purchasing power. B. Inflation caused her to be taxed more heavily and increased her purchasing power. C. Her raise reflects the inflation rate, and therefore her purchasing power is unchanged. D. Inflation caused her to be taxed more but didn’t change her purchasing power.
A local doughnut shop reduced the price of its doughnuts from $4 per dozen to $3.50 per dozen, and as a result, the daily sales increased from 300 to 400 dozen. This indicates that the price elasticity of demand for the doughnuts was:
A. elastic. B. inelastic. C. unitary elastic. D. indeterminate; more information is needed to determine the price elasticity of demand.