The quantity of money demanded __________. Consumers and firms spend ___________.
Fill in the blank(s) with the appropriate word(s).
decreases; less
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People who are currently not working but are actively looking for work are officially classified as
A) employed and out of the labor force. B) unemployed and out of the labor force. C) employed and in the labor force. D) unemployed and in the labor force.
Answer the following statements true (T) or false (F)
1. Probably the main characteristic of a demand curve is that it slopes upward from left to right. 2. Typically, the higher the price of a commodity, the greater the quantity supplied. 3. Price ceilings usually create surpluses since supply is increased. 4. Price floors can create surpluses if price floors are above market prices. 5. Price elasticity of demand is a measure of consumer responsiveness to a change in price.
Assumptions for economic theories and models should be
A. maintained until overwhelming evidence to the contrary occurs. B. logical rather than empirically testable. C. simple and reasonable rather than complex. D. rejected if they are not totally realistic.
Assume the total real output of a developing country increases from $8 billion to $8.2 billion while its population expands from 14 to 15 million people from one year to the next. Over the year, per capita income has:
A. Increased by $25 per person B. Decreased by $25 per person C. Increased by $533 per person D. Decreased by $533 per person