At higher interest rates, fewer people or firms will want to borrow. At lower interest rates, fewer people or firms will want to save
a. True
b. False
Indicate whether the statement is true or false
True
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Which of the following is not an explanation for the revival in the growth of productivity starting in the mid-1990s?
A) Cell phones and wireless Internet access have increased worker flexibility. B) Internet use has increased the efficiency of how firms buy and sell to each other and to consumers. C) Information and communication innovations are increasingly geared toward improving business processes and not consumer products. D) Faster computers have sped up data processing.
The deliberate change in taxes, transfer payments, or government expenditures to achieve macroeconomic policy objectives is known as
A) expansionary fiscal policy. B) contractionary fiscal policy. C) discretionary fiscal policy. D) automatic stabilizers.
Wealthy professors are more likely to shop at high end stores with shorter wait times at the cashier than poor students because
a. They value the item more than the student b. They like wasting money c. The opportunity cost of waiting in a cashier line is higher for professors than for undergraduate students d. They like to show off
Suppose the demand curve and the supply curve in a market are both linear, and suppose the price elasticity of supply is 0.5 . Will the deadweight loss from a $3 tax per unit be larger if the price elasticity of demand is 0.3 or if the price elasticity of demand is 0.7?