As a result of an expansionary monetary policy ________
a. both aggregate expenditure and aggregate demand increase
b. both aggregate expenditure and aggregate demand decrease.
c. aggregate expenditure increases and aggregate demand decreases.
d. aggregate expenditure decreases and aggregate demand increases.
e. aggregate expenditure remains unchanged; aggregate demand increases.
Ans: a. both aggregate expenditure and aggregate demand increase
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Which of the following statements is an accurate statement about the Social Security (OASDI) program?
A) The program is financed by voluntary contributions. B) Only 50 percent of workers are covered by OASDI. C) Benefits are based on financial need. D) The program transfers income from those who work to those who do not work.
For which of the following goods is the income elasticity of demand likely to be largest?
a. paperback mystery stories b. best-selling hardcover novels c. used textbooks d. children's books e. leather-bound editions of Shakespeare
There exist only two causes of monopoly: barriers to entry and government restrictions.
Answer the following statement true (T) or false (F)
Experiments show that when real people play the ultimatum game, starting with $100,
a. Player A usually proposes giving Player B more than $50. b. Player B usually accepts Player A's proposal if Player A proposes giving Player B $30 or $40. c. players show themselves to be rational wealth-maximizers. d. Player B will usually demand an even split.