All other things being equal, when the level of the stock market is ________, investment spending ________
A) high; tends to be low B) high; tends to be high
C) low; tends to be high D) high or low; does not seem to change
B
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If the initial distribution of labor and capital is Pareto optimal, which of the following statements is TRUE?
A) It is possible to reallocate labor and capital across industries so as to increase the production of one good without decreasing the production of another good. B) It is possible to reallocate labor and capital across industries so as to increase the production of one good, but only by reducing the production of another good. C) It is possible to reallocate labor and capital across industries so as to increase the production of every good. D) none of the above
A utility-maximizing consumer will
a. consume at a point on her budget line b. consume each good until its marginal utility is zero c. adjust her consumption pattern so that the marginal utilities of all goods are equal d. consume more of a good only if its price rises e. stop consuming any good whose price rises
Comparisons of GDP levels across countries are least accurate when:
A. prices differ across countries and nonmarket activities are a large part of total economic activity. B. purchasing power parity prevails. C. prices differ across countries. D. nonmarket activities are a small part of total economic activity.
An increase in the supply of gasoline, ceteris paribus, will cause equilibrium price
A. To rise and equilibrium quantity to fall. B. And equilibrium quantity to fall. C. To fall and equilibrium quantity to rise. D. And equilibrium quantity to rise.