If you were able to increase the overall class grade point average above the 2.0 to a level of 2.5, what would you do to the distribution?
What will be an ideal response?
Most people will eliminate the F's and any D's that they can before reaching the 2.5 constraint.
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A normal good is one
A) with a downward sloping demand curve. B) for which demand increases when the price of a substitute rises. C) for which demand increases when income increases. D) none of the above
The supply of loanable funds is equal to the supply of saving in the economy. The three sources of saving in an economy include all of the following except
A) households. B) businesses. C) the government. D) the foreign sector.
Which of the following best describes Keynes’ argument about the economy?
a. He argued the economy often produced less than its full potential because it was technically impossible to produce more with the existing workers and machines. b. He argued the economy often produced less than its full potential, not because lack of demand in the economy as a whole led to inadequate incentives for firms to produce, but because it was technically impossible to produce more with the existing workers and machines. c. He argued the economy often produced less than its full potential, not because it was technically impossible to produce more with the existing workers and machines, but because a lack of demand in the economy as a whole led to inadequate incentives for firms to produce. d. He argued the economy often produced less than its full potential because it was technically impossible to produce more due to inadequate incentives for firms to produce.
Inflation presents risk because:
A. there is no certainty regarding what inflation will be in the future. B. there are different ways to measure it. C. inflation is always present. D. inflation cannot be measured