The financial system:
A. gathers information about the economy in an effort to inform the public.
B. brings together savers and borrowers in a set of interconnected markets where people trade a variety of financial products.
C. connects the government to those truly in need of public services.
D. is used to help individuals keep track of the general price level.
Answer: B
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An economist estimates that for every 1 percent increase in the price of natural Christmas trees, the demand for artificial trees rises by .2 percent. From this information one can conclude that:
A. the income elasticity of demand for natural Christmas trees is less than 1. B. natural and artificial Christmas trees are complements. C. natural and artificial Christmas trees are substitutes. D. natural Christmas trees are luxuries.
Two studies published in the New England Journal of Medicine link the risk of breast cancer to alcohol consumption. Young women who have nine drinks per week were reportedly 150 percent more likely to develop breast cancer. Considering the market for alcohol, an economist would predict a movement
a. up the demand curve as quantity demanded falls. b. up the supply curve as the demand curve shifts. c. down the supply curve as the demand curve shifts. d. down the demand curve as quantity falls.
The Agricultural Adjustment Act, passed in 1933, was an effort to
a. keep agricultural prices high by increasing supply. b. keep agricultural prices low by increasing supply. c. keep agricultural prices high by decreasing supply. d. keep agricultural prices low by decreasing supply.
Two of the variables used to construct the KOF Swiss Economic Institute's economic globalization index are _______________ as a percentage of GDP, and tariff rates (the ______________ the tariff rate, the _____________ degree of economic globalization)
A) public debt; higher; lower B) trade; higher; lower C) trade; higher; higher D) budget deficits; lower; higher