Other things equal, a reduction in personal income taxes will decrease consumption and will have an expansionary effect on real GDP
a. True
b. False
Indicate whether the statement is true or false
False
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The entrepreneur
a. serves as a liaison between management and labor b. owns all of the factors of production c. allocates the risk and uncertainties of enterprise to others d. assumes the risk and uncertainties of enterprise e. earns more than labor
If both the demand for a product and the supply of it decrease, then the equilibrium quantity will ________ and the equilibrium price will ________.
A) increase; either increase, decrease, or remain constant B) decrease; either increase, decrease, or remain constant C) increase; increase D) increase; decrease
In the year 2015, the United States spent about
A. 100 percent of GDP on health care. B. 17 percent of GDP on health care. C. 6 percent of GDP on health care. D. 2 percent of GDP on health care.
Firms stop producing DVDs and start producing Blu-ray discs because people prefer Blu-ray discs discs to DVDs. This will
A. make the economy more stable. B. make the distribution of outcome more equitable. C. make the economy less stable. D. improve efficiency.