The challenge for economists in the early postwar period was to develop a consumption hypothesis that could explain how
A) the saving ratio could remain fairly constant across income groups while the aggregate saving ratio increased over time as average real income grew.
B) the saving ratio for high-income families could be lower than for low-income families while the aggregate saving ratio remained fairly constant over time as average real income grew.
C) the saving ratio for high-income families could be higher than for low-income families while the aggregate saving ratio remained fairly constant over time as average real income grew.
C
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The employees of Ajax cookies are on strike. Jane has decided not to shop at any store that is still selling Ajax cookies. This is known as
A) a closed shop. B) a union shop. C) a sympathy strike. D) a secondary boycott.
When entry barriers into a market are high,
a. a monopolist will always be able to make an economic profit. b. rival firms will enter and drive price down to the level of per-unit costs if the firms in the market are making economic profit. c. entry into the market will not take place, at least not quickly, even if the firms currently in the market are making economic profits. d. the producers in the market will have little or no incentive to produce efficiently (at a low cost).
Extremely high rates of inflation such as that experienced by Nicaragua in the 1980s are described as
A. deflation. B. hyperinflation. C. disinflation. D. inflation.
Refer to the information provided in Figure 26.6 below to answer the question(s) that follow.
Figure 26.6Refer to Figure 26.6. Suppose the equilibrium output is initially $600 billion. An oil embargo would probably
A. decrease both the equilibrium output and the price level. B. decrease the equilibrium output and increase the price level. C. increase the equilibrium output and decrease the price level. D. increase both the equilibrium output and the price level.