Government purchases are included in national product.
Answer the following statement true (T) or false (F)
True
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An economic model is a detailed version of an economic environment
Indicate whether the statement is true or false
Refer to Figure 14.1. Other things equal, which of the following will cause a movement from point Y to point X?
A) an increase in the real interest rate B) a decrease in disposable income C) a decrease in expected profits for firms D) an increase in net exports
Suppose Johnny Stroller sells 12, 25, and 75 year-old scotch in under black, red, and blue labels. Suppose the storage costs are zero and the initial production costs are the same. What is the implied (approximate) interest rate if black sells for $18, red for $34 and blue for $388
a. 2 b. 5 c. 8 d. 10
The supply curve for motor oil is the typical upward-sloping straight line, and the demand curve for motor oil is the typical downward-sloping straight line. When motor oil is taxed, the area on the relevant supply-and-demand graph that represents the deadweight loss is
a. larger than the area that represents consumer surplus in the absence of the tax. b. larger than the area that represents government's tax revenue. c. a triangle. d. All of the above are correct.