In the simple circular flow model of the economy, total expenditures on goods and services equal total household income
a. True
b. False
Indicate whether the statement is true or false
True
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Which of the following are examples of goods that have been subject to voluntary export restraints?
A) Japanese cars and Chinese solar panels B) Belgian chocolates and French wines C) French wines and cheeses D) Japanese sushi and German cars E) Taiwanese electronics and Canadian barley
According to Modigliani's life-cycle hypothesis, the
a. MPC for young adults is relatively low b. middle-aged experience their highest and most rapidly growing MPCs c. MPC falls during middle-age d. MPC falls during old age e. MPC is constant throughout a lifetime
Among arguments for and against advertising, both sides agree that advertising leads to
a. higher prices and less competitive markets. b. higher prices and more competitive markets. c. lower prices and more competitive markets. d. None of the above is correct. The debate fails to resolve the question of advertising's effect on prices and competition.
Formal economic reasoning applied to situations in which decisions are interdependent is called:
A. competitive decision making. B. game theory. C. monopolistic decision making. D. economic decision making.