If the price of a product rises and as a result consumers decrease their purchases, then
A. demand has increased.
B. demand has decreased.
C. quantity demanded has increased.
D. quantity demanded has decreased.
D. quantity demanded has decreased.
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The early 1980s "Star Wars" space-based defensive weapons system was an example of _____
a. economic warfare b. a military alliance c. negative externality d. undefined property rights
The idea that poor people consume a higher percentage of their income than the rich is a logical conclusion drawn from
a. Keynes's absolute income hypothesis b. Duesenberry's relative income hypothesis c. Friedman's permanent income hypothesis d. the life-cycle hypothesis of consumption e. the consumption function
Balancing the government’s budget each year would
a) allow tax rates to remain constant from year to year b) reduce uncertainty over future tax rates and net income c) exacerbate recessions d) stabilize short run GDP e) generate smaller economic distortions than a policy of countercyclical deficits and surpluses
Which of the following statements draws a false conclusion?
A. Life expectancy in an average African country is lower than in an average European country; therefore Europeans can expect to outlive Africans. B. Nations that currently produce no capital goods, and whose inhabitants are hungry, risk famine with internally funded capital investments. C. Some African nations have substantially more food and capital investment than others; therefore, their standard of living is higher. D. Population reduction policies, if effective, can improve the nation's wealth by increasing real per capita GDP.