Using Figure 3 above the distance between what 2 lines illustrate an inflationary expenditure gap?
A. PAE2 to PAE3
B. Y2 to Y3
C. PAE1 to PAE2
D. Y1 to Y2
Answer: A
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Does a 21 year old who inherited millions of dollars' worth of corporate stock and who never works supply anyone with productive services?
A) No, by definition. B) Only if her wealth is invested in capital equipment that adds to economic growth. C) Only if others are willing to pay to watch her enjoy life. D) Yes, if she supplies the services of the resources she owns.
The best description of the economic ideology during World War I was __________
a. The belief that the economy could be strengthened by centralized coordination. b. The economy would work best with a strong commitment to the free market. c. The US should eliminate many federal agencies during World War I to make the government more efficient.
Eggs are considered a poor medium of exchange principally because of their
a. durability b. portability c. volatility d. fragility e. abundance
If the price elasticity of supply is 3, supply is:
A. unaffected by price changes. B. inelastic. C. unit elastic. D. elastic.