An important assumption that is made when constructing a demand schedule is that
a. only price and quantity matter in determining demand.
b. people always want a certain amount of a product.
c. demand is too important to be left to the economists.
d. all other determinants of demand are held constant.
e. demand has a positive slope.
D
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The results of a 2008 Los Angeles Times poll suggest that a significant majority of Americans believe that free international trade helps the American economy
a. True b. False Indicate whether the statement is true or false
Answer the following questions true (T) or false (F)
1. The U.S. is highly sensitive to increasing interest rates. 2. The U.S. farm sector is characterized by a large number of large, highly capitalized farming operations. 3. A major change in farm program policy forthcoming in the 2014 farm bill involves greater reliance on property insurance as a means of providing a safety net to farmers.
Refer to the figure below, which shows four different Lorenz curves (I, II, III, and IV). The movement from point b to point a in the graph would indicate that the:
A. Lower 40% of households increased their share of total income from 25% to 40%
B. Lower 40% of households decreased their share of total income from 60% to 40%
C. Lower 60% of households decreased their share of total income from 40% to 25%
D. Lower 40% of households increased their share of total income from 40% to 60%
Assuming that the government can act immediately before the multiplier takes effect, then to offset a reduction in investment by $1 billion, government purchases must be:
A. decreased by $1 billion. B. increased by $1 billion. C. increased by $2 billion. D. increased by $0.5 billion.