If the government decreases its purchases of goods and services by $12,000 and the MPS is 0.5, GDP and income will eventually decrease by:
A. $2,400.
B. $6,000.
C. $24,000.
D. $60,000.
Answer: C
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Refer to Table 11.1. If exports decrease by 30, what is the new equilibrium level of output?
A) 1,700 B) 2,300 C) 6,800 D) 9,200
Which of the following pairs of goods are most likely to have a negative cross-price elasticity of demand?
A) Hotdogs and hotdog buns B) Coke and Pepsi C) Rail tickets and plane tickets D) A Luciano Pavarotti compact disc and a Placido Domingo compact disc (Both Pavarotti and Domingo are opera stars.)
The English word that comes from the Greek word for "one who manages a household" is
a. market. b. consumer. c. producer. d. economy.
Which of the following is not correct?
a. If you buy a bond from a corporation, you can sell the bond to someone else before it matures. b. Term refers to the scheduling of periodic interest rate payments on a bond. c. A bond is an IOU. d. There are millions of different bonds in the U.S. economy.