If price rises, what happens to quantity supplied of a product?
a. It increases.
b. It decreases.
c. It does not change.
d. Quantity supplied is constant, but supply increases.
b. It decreases.
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An economist who favors smaller government would recommend:
A. increases in government spending during recession and tax increases during inflation. B. tax increases during recession and tax cuts during inflation. C. tax cuts during recession and reductions in government spending during inflation. D. tax cuts during recession and tax increases during inflation.
Price elasticity of demand is the ratio of the percentage change in price of one good to the percentage change in quantity demanded of another good.
Indicate whether the statement is true or false
The amount of consumption in an economy correlates
A. directly with the level of saving. B. directly with the level of disposable income. C. directly with the rate of interest. D. inversely with the level of disposable income.
Efficiency is an important social goal because:
A. movements toward economic efficiency make the total economic pie larger. B. it assures a normative outcome. C. it takes into consideration the distribution of income. D. it assures a fair outcome.