Those that believe that the recent period of slow growth will pass and that higher levels of growth can be created through liberal policies focus on ones that would cause
A. decreases in aggregate supply.
B. increases to aggregate supply.
C. increases to aggregate demand.
D. increases in interest rates.
Answer: C
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The slope of an indifference curve at all points reflects
A. the terms by which the consumer can trade off goods in the market. B. the relative prices of the two goods. C. the willingness of the consumer to trade one good for another. D. consumer income relative to the price of a good. E. the relative price ratio of the two goods.
Bill currently uses his entire budget to purchase 5 cans of Pepsi and 3 hamburgers per week. The price of Pepsi is $1 per can, the price of a hamburger is $2, Bill's marginal utility from Pepsi is 4, and his marginal utility from hamburgers is 6
Bill could increase his utility by: A) increasing Pepsi consumption and reducing hamburger consumption. B) increasing hamburger consumption and reducing Pepsi consumption. C) maintaining his current consumption choices. D) We do not have enough information to answer this question.
An economist would say the price is too high for a certain service if
A. poor people couldn’t afford to buy it. B. nobody could afford to buy it. C. the price was above marginal cost. D. it is an essential service and consumes a significant share of income.
PriceQuantity Demanded$510$420$330$240$150Refer to the table above. Starting at a $1 price, at what price range does demand become elastic?
A. $4-5 B. $3-4 C. $1-2 D. $2-3