What is a pure price change?
What will be an ideal response?
A pure price change is when the price of a good changes although nothing about the good's quality or nature has changed. Sometimes it can be hard to determine whether goods are becoming more expensive when price changes occur alongside quality changes or technological improvements.
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A rise in price almost always:
a. leads to an increase in the quantity supplied of that good or service. b. leads to a decrease in the quantity supplied of that good or service. c. has no effect on the quantity supplied of that good or service. d. leads to an increase in the quantity demanded of that good or service.
If Joanna is risk averse, then
a. her utility function exhibits the property of decreasing utility. b. her utility function exhibits the property of increasing marginal utility. c. she dislikes bad things more than she likes comparable good things. d. she is unlike most people, because most people are not risk averse.
Which of the following is a general rule for how demand shocks affect the IS curve?
A) Demand shocks will always show up as changes in the expected real exchange rate. B) Demand shocks are usually rare and have little effect. C) When any exogenous variable works to increase demand, IS shifts to the right and, conversely, when any exogenous variable works to decrease demand, IS shifts to the left. D) When any exogenous variable works to increase demand, IS shifts to the left and conversely, when any exogenous variable works to decrease demand, IS shifts to the right.
Which of the following income maintenance programs is designed to establish nationwide minimum incomes for the aged, the blind, and the disabled?
A) the Old-Age Survivors' and Disability Insurance (OASDI) program B) the Supplemental Security Income (SSI) program C) the Temporary Assistance to Needy Families (TANF) program D) the food stamps program