In the classical model, the aggregate supply curve is
A. upward sloping.
B. downward sloping.
C. vertical.
D. horizontal.
Answer: C
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Which of the following is likely to lead to an increase in the gross domestic product of a country?
A) An increase in the tax rates in the country B) An increase in the interest rate in the country C) An increase in the capital stock of the economy D) An increase in the unemployment rate in the country
The above figure shows the utility of wealth curve for a homeowner whose only possession is a $50,000 house. Which of the following statements is TRUE?
A) This person has diminishing marginal utility of wealth. B) This person is not risk averse. C) Risky situations cause this person no loss of utility. D) None of the above are correct.
Most unemployment insurance benefits are not paid to poor people or even to people who are at high risk of becoming poor
Indicate whether the statement is true or false
Figure 15-1
Figure 15-1 describes conditions in the monopolized weezil industry. If the government replaces the monopolist with perfectly competitive firms and forces these firms to take account of all the costs and benefits they impose on society, the industry will produce an output equal to
A. W. B. X. C. Y. D. Z.