The above table gives Sue's marginal utility schedules for sub sandwiches and Mountain Dew, the only products Sue consumes. Suppose initially the price of a sub sandwich is $4 each and the price of a Mountain Dew is $2 each. Sue's income is $12
If the price of subs rises to $6 each, Sue will consume A) more Mountain Dews.
B) fewer subs.
C) fewer Mountain Dews so that she can still afford to buy two subs.
D) Both answers A and B are correct.
D
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Suppose the federal government implemented a flat tax to replace the income tax, and the flat tax saved taxpayers a total of $5 billion. A tax change such as this could be viewed as an example of the federal government implementing
A) contractionary monetary policy. B) contractionary fiscal policy. C) expansionary monetary policy. D) expansionary fiscal policy.
If the population is 300 million, with 70 million under the age of 16 and institutionalized, another 70 million not in the labor force, 10 million unemployed and 150 million employed, the unemployment rate is
A) 23.3 percent. B) 6.7 percent. C) 6.25 percent. D) 26.7 percent.
Which of the following shifts aggregate demand to the right?
a. an increase in the price level b. an increase in the money supply c. a decrease in the price level d. a decrease in the money supply
As the gross domestic product increases, it is easier for all levels of government to
A. maintain trade deficits. B. carry out their functions. C. reduce their spending. D. conserve natural resources.