For a country such as the U.S., the wealth effect exerts a very important influence on the slope of the aggregate-demand curve, since U.S. wealth is large relative to wealth in most other countries
a. True
b. False
Indicate whether the statement is true or false
False
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Suppose that for Merv the marginal utility of $50-per-serving caviar is 100 and the marginal utility of $1-per-serving popcorn is 10. For his snack, Merv should buy:
A. the caviar if he has the $50; otherwise, the popcorn. B. the caviar if he has the $50; otherwise, nothing. C. the popcorn, whether he has the $50 or not. D. five servings of popcorn for each serving of caviar.
As a price searcher, a monopoly firm
A. must determine its output level and then accept the market price for its product. B. must determine its optimal price-output combination. C. must only determine the price it charges. D. must determine the prices it pays for its inputs and accept the market price for its output.
As unemployment rose during the recession of 2007-2009, black teenage unemployment
A. remained essentially unchanged. B. fell to 18.2%, a rate less than half that of white teenagers. C. rose to 18.2%, a rate less than half that of white teenagers. D. rose to 49.2%, a rate more than twice that of white teenagers.
The government raises revenue through taxation to pay for the services it provides
a. True b. False Indicate whether the statement is true or false