If the price level increases, we would expect consumers to
A. raise their consumption functions.
B. move downward along their consumption functions.
C. lower their consumption functions.
D. move upward along their consumption functions.
Answer: C
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Government purchases currently take up about
A) 20 percent of U.S. GNP, and this share has not changed much since the late 1950s. B) 38 percent of U.S. GNP, and this share has not changed much since the late 1950s. C) 18 percent of U.S. GNP, and this share has been increasing since the late 1950s. D) 18 percent of U.S. GNP, and this share has been decreasing since the late 1950s. E) 25 percent of U.S. GNP, and this share has been decreasing since the late 1950s.
Harry needs to hire a lawyer but does not know how to find a good one. The lawyer is a(n)
A) experience good. B) credence good. C) logo good. D) search good.
The short-run price elasticity of demand for airline travel is .05, while the long-run elasticity is 2.36 . This means that a significant increase in airline ticket prices will cause airline companies to:
a. collect less revenue from short-notice travelers. b. collect more revenue from travelers who book well in advance. c. lose money on short-notice travelers. d. collect less revenue from travelers who book well in advance. e. lose many of its short-notice travelers.
Which of the following serves as money in many federal prisons in the United States these days?
a. Postage stamps b. Energy bars c. Plastic-and-foil pouches of mackerel d. Cans of tuna e. Cigarettes