An inferior good is one for which
A) demand increases as income increases.
B) demand decreases as income increases.
C) the demand curve is vertical.
D) the demand curve slopes up.
Answer: B
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The income-expenditure multiplier is the effect of a one-unit increase in:
A. after-tax disposable income on consumption. B. expenditure on potential output. C. after-tax disposable income on short-run equilibrium output. D. expenditure on short-run equilibrium output.
One of the major issues that arose during the Doha round of negotiations involved complaints by ________ about ________
A) developing countries; agricultural subsidies. B) manufacturers; intellectual property C) industrialized countries; enforcement of contracts D) Eastern European countries; European Union tariffs E) South and Central American countries; domestic content requirements
When full employment is present in the United States:
a. the rate of unemployment will fall to zero. b. the actual rate of unemployment will be less than the natural rate of unemployment. c. approximately 95 percent of the adult population will be employed. d. approximately 95 percent of the labor force will be employed.
An increase in government spending financed by borrowing changes people's expectations about future taxation such that current consumption expenditures
a. fall. The increase in expenditures makes it likely that future taxes will create smaller distortions. b. fall. The increase in expenditures makes it likely that future taxes will create larger distortions. c. rise. The increase in expenditures makes it likely that future taxes will create smaller distortions. d. rise. The increase in expenditures makes it likely that future taxes will create larger distortions.