Suppose you like shoes and your income doubles. If shoes are a normal good, then an increase in your income will cause
a. the market demand for shoes to shift to the left
b. the market demand for shoes to shift to the right
c. your quantity demanded of shoes to decrease
d. the market's quantity demanded of shoes to decrease
e. market demand for shoes to shift to the left and your own quantity demanded of shoes to shift to the right
B
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Joy is training to become a chef. The skills she is obtaining from her training and education will increase Joy's ________
A) human capital B) physical capital C) entrepreneurship D) None of the above answers are correct.
When the government both provides a service and covers its costs through taxation,
a. the government has a strong incentive to supply consumers with desired goods at a low cost. b. consumers are in a weak position to either discipline the suppliers or alter the quantity or quality of the service provided. c. the invisible hand will direct decision makers toward the most efficient level of output. d. Consumers have strong incentive to be cost conscious.
In an open economy, gross domestic product equals $2,450 billion, consumption expenditure equals $1,390 billion, government expenditure equals $325 billion, investment equals $510 and net capital outflow equals $225 billion. What is national saving?
a. $225 billion b. $510 billion c. $735 billion d. $1,390 billion
When the exchange rate is
A) flexible, purposeful stabilization is more difficult because monetary policy has no power at all to affect domestic output and employment. B) fixed, purposeful stabilization is less difficult because monetary policy has no power at all to affect domestic output and employment. C) fixed, purposeful stabilization is more difficult because monetary policy has no power at all to affect domestic output and employment. D) a crawling peg, rather than fixed, purposeful stabilization is more difficult because monetary policy has no power at all to affect domestic output and employment. E) fixed rather than crawling peg purposeful stabilization is more difficult because fiscal policy has no power at all to affect domestic output and employment.