What is the likely effect in an economy when total spending is too low?
a. inflation
b. tax increases
c. unemployment
d. efficiency
c. unemployment
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A demand curve shows the relationship between
A) the price of a produce and the demand for the product. B) the quantity that consumers are willing and able to buy and the quantity that sellers are willing and able to offer. C) the price of a product and the quantity of the product demanded. D) the amount of a product sellers are willing to sell at a particular price and the amount consumers are willing to buy at that price.
The present value of $1,500 received 8 years in the future would be calculated as which of the following when the interest rate is 3%?
A) 1,500/(1.03)8 B) 8.03/1,500 C) 1,500 × 1.3 × 8 D) 1,500/(1.3)8
A tariff on avocadoes ______________ the price of avocadoes, _____________ consumers' surplus for avocado buyers, _______________ producers' surplus of avocado growers and __________________ tariff revenue. Because the loss to _____________ is more than the gain to ___________________, there is a net loss to society
A) raises; increases; decreases; generates; producers; consumers and government B) lowers; increases; decreases; does not generate; producers and government; consumers C) raises; increases; decreases; does not generate; producers and government; consumers D) raises; decreases; increases; generates; consumers; producers and government
Futures markets and derivatives contribute to economic growth by:
A. increasing the risk-taking capacity of the economy. B. deterring the transfer of risk. C. decreasing speculation. D. forcing people to accept the risk their decisions create.