Which of the following is NOT a simplifying assumption in the simple Keynesian model?
A) There is no foreign trade.
B) Net investment and gross investment are equal.
C) All profits are distributed to the business owners.
D) Real disposable income equals government purchases of goods and services.
D
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In the figure above, using the midpoint method, what is the price elasticity of demand when the price falls from $8 to $7?
A) 4.0 B) 5.0 C) 0.5 D) 0.4 E) 0.25
The market supply curve for any product:
a. always depends on the market demand for that product. b. depends on the general income level of the consumers in the market. c. is a summation of individual firms' supply curves. d. equals the total revenue generated through sale of the commodity. e. is affected by the prices of related products.
Level of economic prosperity
a. standard of living b. privatize c. economic system d. self-interest e. factor payments
Tuition and fees for four year colleges in the United States have risen over five percent per year in the recent past. One cause for the increase in price has been an increase in demand for college education. In the standard model, what could be a possible explanation for the increase in the demand for college education?
A. More colleges have been established B. The cost of two-year colleges has declined over the same period C. Income in the United States has risen D. The price of all other goods in the economy has risen 3 percent over the same period