Jeep Cherokees are a normal good. If people's incomes increase, the direct result will be
A) an increase in the supply of the vehicles.
B) a decrease in the demand for the vehicles.
C) an increase in the demand for the vehicles.
D) Both answers A and C are correct.
C
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Checkable deposits are
A. assets of commercial banks and savings institutions. B. debts of the federal government and government agencies. C. assets of the federal government and government agencies. D. debts of commercial banks and savings institutions.
Fiscal policy most directly affects the economy by increasing or decreasing:
A. aggregate demand. B. interest rate. C. long-run aggregate supply. D. the money supply.
Measuring poverty using an absolute income scale like the poverty line can be misleading because
a. income measures do not include the value of in-kind transfers. b. money is valued less highly by the poor than by the rich. c. the poor are not likely to participate in the labor market. d. income measures are adjusted for the effects of labor-market discrimination.
A worker's contribution to a firm's revenue is measured directly by the worker's
a. marginal product. b. value of marginal product. c. marginal product multiplied by the worker's wage. d. value of marginal product multiplied by the output price.