According to the life-cycle theory of consumption, people tend to consume ________ they earn during their early and later years.
A. less than
B. the same as
C. more than
D. an amount unrelated to what
Answer: C
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The saying “the lower the price, the better” may not always be correct for an economy’s public interest because
A. people should have to pay for what they want. B. people will overuse something they perceive as being cheaper than the utility they receive for it. C. the government can no longer afford to provide all the goods and services it provides because it is slowly going broke. D. cheaper prices will make people buy less of other things.
The World Bank defines ________ poverty as an income of less than $1.90 per day per person.
A. extreme B. severe C. relentless D. extraordinary
If a proportion of traded goods (such as oil) are priced in a foreign currency, the real exchange rate becomes:
a. lower. b. higher. c. less responsive to changes in the nominal exchange rate. d. more responsive to changes in the nominal exchange rate.
If we say that two variables are inversely related, this means that:
A. the two graph as an upsloping line. B. an increase in one variable is associated with a decrease in the other. C. an increase in one variable is associated with an increase in the other. D. the resulting relationship can be portrayed by a straight line parallel to the horizontal axis.