The income-expenditure multiplier arises because one person's additional spending becomes another person's additional income that will generate additional:
A. cyclical unemployment.
B. spending.
C. autonomous expenditure.
D. menu costs.
Answer: B
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In 2011, a dollar could be traded for 100 yen and in 2012 a dollar could be traded for 90 yen. Between these two years, the dollar has become ________ valuable and so the dollar has ________
A) more; appreciated against the yen B) less; depreciated against the yen C) more; appreciated against the dollar D) less; appreciated against the yen E) more; depreciated against the yen
A Commodity X will be considered as a normal good if:
a. the quantity of the good consumed decreases with an increase in income. b. the quantity of the good consumed increases with an increase in income. c. the quantity of the good consumed increases in the same proportion as the increase in income. d. the quantity of the good consumed reflects no change with a change in income.
A conventional pollutant
a. is one that, upon exposure, will cause death, disease, abnormalities, or physiological malfunctions b. is a default category for all pollutants that are not categorized as toxic c. is an identified pollutant that is well understood by scientists d. none of the above
According to Figure 6.1:
A. soup is a normal good.
B. soup is an inferior good.
C. soup is a Giffen good.
D. bread is an inferior good.