Other things being equal, the law of demand suggests that as:
A. The demand for iPads increases, this will cause the price to increase
B. Income increases, the quantity of iPads demanded will increase
C. The price of iPads decreases, the quantity demanded will increase
D. The price of iPads decreases, the quantity demanded will decrease
Answer: C
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When the actual inflation rate turns out to be greater than the expected inflation rate, who gains—the borrower or the lender—and who loses? Explain why
What will be an ideal response?
A policy of maintaining a fixed interest rate will have the greatest stabilizing effect on output when money demand is
A) stable. B) unstable and commodity demand is unstable. C) stable and commodity demand is unstable. D) unstable and commodity demand is stable.
The main attractive feature(s) of a negative income tax program is (are):
a. c and d. b. c, d, and e. c. it is simple. d. it avoids the stigma of hand-outs. e. it only subsidizes the unemployed.
Human Development Index
- What are the advantages of using a measure such as the to compare economic wellbeing across countries?
- Why might there be some problems is using per capita GDP as a way of comparing economic well being in different countries? As part of your answer, consider the effect of differences in:
- household production
- pollution
- crime
- leisure time
- income distribution
- While the may be a reasonable measure to compare wellbeing in different countries, would it be a very useful guide to policymakers conducting fiscal and monetary policy in a given economy? Why are most government policymakers more concerned with GDP?