The slope of the demand curve for a normal good must be positive
a. True
b. False
B
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Which of the following goods and services are omitted from GDP?
A) household production B) expenditure on resources used to protect the environment C) services such as hair styling D) government weather satellites E) capital goods
According to Gary Becker's "Rotten Kid theorem," a child will be deterred from stealing from his siblings
a. as long as he fears that his parents will punish him. b. when parents are altruistic and treat their children equally. c. only if the probability of being caught is sufficiently large. d. if he inherits the "altruistic gene" from his parents.
Scarcity exists because
A. of unlimited resources. B. human wants are enormous relative to the means available to satisfy them. C. production is limited only by technology and human energy. D. advertising creates unnatural desires for surplus goods.
If the MPC = 0.75 and a household obtains $50,000 more dollars then how much would the household spend of the additional $50,000?
A. $12,500 B. $37,500 C. $40,000 D. $50,000