The income effect isolates the change in the consumption of a good caused by the change in:
A. consumer preferences.
B. "real" income.
C. the relative prices of two goods.
D. None of the statements is correct.
Answer: B
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The use of money as a medium of exchange requires a double coincidence of want
a. True b. False Indicate whether the statement is true or false
Poverty is considered to be more permanent in the United States than it is in other nations.
Answer the following statement true (T) or false (F)
Any resources that are made by humans and used to create other goods and services are called:
a) services b) production c) capital d) labor
Economic activity that is above potential output ________
A) signals that potential output is about to increase B) is not possible C) results from an economic shock to which the economy has yet to adjust fully D) occurs near the trough, rather than the peak, of a business cycle E) none of the above