A cut in government spending, a decrease in income abroad, an increase in taxes, or an expectation that future consumer income will fall will all cause aggregate:
A. demand to shift rightward.
B. demand to shift leftward.
C. supply to shift rightward.
D. supply to shift leftward.
Answer: B
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Over the last 50 years, poverty has been:
A. falling, and inequality has been falling as well. B. rising, and inequality has been falling. C. rising, and inequality has been rising as well. D. falling, and inequality has been rising.
Six months ago, the price of gasoline was $2.20 per gallon. Now, the price is $2.40 per gallon. In response to this price increase, the number of gallons of gasoline purchased has declined by 2 percent. Based on this information, what is the absolute price elasticity of demand for gasoline?
A. 0.23 B. 4.35 C. 0.10 D. 1.20
Consider a society consisting of just a farmer and a tailor. The farmer has 10 units of food but no clothing. The tailor has 40 units of clothing but no food. Suppose each has the utility function U = F ? C. The price of clothing is always $1
What is the competitive equilibrium price for food? A) $5 B) $4 C) $3 D) $2
According to the Lucas supply function, when the substitution effect dominates the income effect, workers who experience a ________ price surprise will work ________ hours.
A. positive; the same number of B. negative; more C. positive; more D. negative; the same number of