If Stimpson University increases tuition in order to increase its revenue, it will:
A. not be successful if the demand curve slopes downward.
B. be successful if demand is elastic.
C. be successful if demand is inelastic.
D. be successful if supply is elastic.
Answer: C
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Under the gold standard, a country that is experiencing a gold outflow
a. has a balance of payments deficit. b. has a shrinking money supply. c. is experiencing a fall in output. d. All of these.
When consumer spending and consumption decrease, consumer confidence tends to
A. fall. B. rise. C. remain the same. D. be unpredictable.
The efficient level of pollution abatement is where:
A. the marginal benefit of abatement is greater than its marginal cost. B. the marginal benefit of abatement is less than its marginal cost. C. the marginal benefit of abatement is equal to its marginal cost. D. None of these
To combat a recession with discretionary fiscal policy, Congress and the president should
A) decrease government spending to balance the budget. B) decrease taxes to increase consumer disposable income. C) lower interest rates and increase investment by increasing the money supply. D) raise taxes on interest and dividends, but not on personal income.