The "composite good" refers to
A. income not spent on good X in a two-dimensional graphical presentation.
B. large purchases that cannot be incrementally divided.
C. an abstraction requiring more than a three dimensional graph.
D. the notion that consumer pleasure cannot be modeled graphically.
Answer: A
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When drawn against the real interest rate, the output demand curve unambiguously shifts to the right if either or both of the following occur
A) an increase in current taxes and an increase in future taxes B) an increase in current taxes and a decrease in future taxes C) a decrease in current taxes and an increase in future taxes D) a decrease in current taxes and a decrease in future taxes
Most economists agree that
a. fiscal policy is a more effective stabilization tool than monetary policy. b. it is difficult to time discretionary changes in macro-policy in a manner that will promote stability. c. monetary policy should focus on reducing unemployment, while fiscal policy should focus on the control of inflation. d. discretionary macro-policy can easily be instituted in a manner that will promote economic stability.
Macroeconomists are concerned about changes in the unemployment rate because changes in the unemployment rate provide information about
A) the state of the economy. B) the welfare of those who are unemployed. C) none of the above D) both A and B
For a firm facing a downward sloping demand curve, marginal revenue
A) is at a minimum at the midpoint of the demand curve. B) is greater at higher prices than at lower prices. C) increases each time prices are lowered. D) falls each time prices are raised.