The Federal Reserve econometric model emphasizes the impact of the wealth effect on
A) consumption.
B) government spending.
C) business investment.
D) exports.
A
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A demand curve with an elasticity of 1.0 is a unit-elastic demand curve.
Answer the following statement true (T) or false (F)
If a consumer's budget line for food (F) and shelter (S) is represented as F = 250 - 5S, and 50 units of food is purchased, how many units of shelter can be purchased at most?
A) 0 B) 40 C) 60 D) 80
Suppose that the inflation rate was 4 percent in 2002 and 3 percent in 2003 . This would mean that
a. the price level fell from 2002 to 2003 b. the price level fell at a faster rate in 2003 than in 2002 c. the price level rose at a faster rate in 2003 than in 2002 d. the price level rose at a slower rate in 2003 than in 2002 e. all prices in the economy rose at a rate of 3 percent in 2003
In economics, what is meant by “absolute advantage”?
a. entrepreneurial ability b. using fewer resources c. lower opportunity cost d. having the most workers