Which of the following best characterizes the relationship between aggregate demand and aggregate consumption expenditures under the aggregate expenditure model?
a. loosely dependent
b. essentially equal
c. completely irrelevant
d. often misunderstood
b. essentially equal
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The table above gives the utility from pens and pencils. The marginal utility derived from the third pen is
A) 200. B) 155. C) 445. D) 45.
What is the transitional gains trap? In New York, in order to be legal a cab driver must have a medallion (i.e., a license) to operate
With respect to New York cab drivers who, if anyone, received transitional gains? What if the medallion program were ended tomorrow. Who would be harmed?
New growth theory emphasizes all of the following EXCEPT
A) technology. B) import restrictions. C) research and development. D) innovation.
Policymakers use taxes
a. to raise revenue for public purposes but not to influence market outcomes. b. both to raise revenue for public purposes and to influence market outcomes. c. when they realize that price controls alone are insufficient to correct market inequities. d. only in those markets in which the burden of the tax falls clearly on the sellers.