When total revenue and price are inversely related, demand is
A) unit-elastic.
B) inelastic.
C) elastic.
D) not related.
Answer: C
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Since 1940 the US Government has generally had a budget:
A. surplus. B. that has been balanced C. multiplier. D. deficit.
When an economy's overall production grows faster than its population, it is referred to as:
A) long-run growth per capita. B) an increase in nominal GDP. C) deflation. D) the paradox of thrift.
Richard is consuming X and Y so that he is spending his entire income and MUx/Px = 6 and MUy/Py = 10. To maximize utility, he should
A. continue to consume the same amount of X and Y since he is already maximizing utility. B. consume more X and less Y. C. consume less of both X and Y. D. consume less X and more Y.
The government adds to its overall public debt whenever it:
A. Runs a budget deficit B. Increases money supply in the economy C. Buys government bonds D. Raises tax collection