If Wanda's income is reduced to zero after she loses her job, her consumption will be ________ and her saving will be ________.
A. greater than zero; greater than zero
B. greater than zero; less than zero
C. less than zero; greater than zero
D. less than zero; less than zero
Answer: B
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Expansionary policies are government policies that
A) decrease aggregate supply. B) increase aggregate demand. C) decrease aggregate demand. D) increase aggregate supply.
Which of the following was not illegal under the original Clayton Act?
a. Tying contracts. b. Interlocking directorates. c. Merger by purchase of assets with cash. d. All of these were illegal under the original Clayton Act.
When markets fail, public policy can
a. do nothing to improve the situation. b. potentially remedy the problem and increase economic efficiency. c. always remedy the problem and increase economic efficiency. d. in theory, remedy the problem, but in practice, public policy has proven to be ineffective.
Which one of the following is an example of a normative statement?
A) Public school teachers are not paid enough. B) The average public school teacher earns less than the average truck driver. C) The average public school teacher earns more than the average truck driver. D) Students in smaller classes perform better on standardized tests.