The cross-price elasticity of demand between bread and potatoes is estimated to be 0.5. This implies bread and potatoes are:
A. normal goods.
B. substitutes.
C. complements.
D. unrelated.
Answer: B
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During the last 50 years, which of the following had the lowest level of real GDP per person?
A) Africa B) Central and South America C) United States D) Central Europe
Greater availability of lower-cost drugs will tend to shift the ________ curve for medical services to the ________
A) demand; right B) supply; left C) supply; right D) demand; left
A transfer payment is
a. income that is received but not earned b. income that is earned but not received c. included in GDP to account for the spending on capital depreciation d. part of personal disposable income but not personal income e. always equal to the taxes that the government collects
According to Buchanan and Wagner, why is there a political bias toward expansionary fiscal policy rather than contractionary fiscal policy?
A) In a democracy, expansionary fiscal policy prescriptions are more politically popular than are the policy prescriptions associated with contractionary fiscal policy. B) In a democracy, contractionary fiscal policy prescriptions are more policitally popular than are the policy prescriptions associated with expansionary fiscal policy. C) They assert that empirical evidence has shown that Keynesian fiscal policy prescriptions have been successful at closing recessionary gaps, but not inflationary gaps. D) ?They assert that empirical evidence has shown that Keynesian fiscal policy prescriptions have been successful at closing inflationary gaps, but not recessioinary gaps. E) ?none of the above