The tastes for foreign goods and services generally has a ________ relationship with aggregate expenditure.

A. positive
B. constant
C. negative
D. skewed


Answer: C

Economics

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If households spend $0.95 of each additional dollar of increased income, the expenditure multiplier will be

A) 1.05. B) 5. C) 20. D) 9.5.

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Which of the following is TRUE about firms organized along functional lines?

a. Workers find it difficult to develop functional expertise b. Workers find it difficult to share information within their division c. They foster the exploitation of economies of scale d. All of the above

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Suppose that 75 percent of a cigarette tax is borne by consumers. If the supply elasticity is 1, the demand elasticity is equal to:

A. 1/2. B. 1. C. 1/3. D. 1/4.

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The Golden Rule of capital accumulation maximizes the steady-state level of

A) output per worker. B) capital per worker. C) consumption per worker. D) investment per worker.

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