An increase in government purchases or a decrease in taxes, other things being equal, will tend to:
a. increase interest rates and decrease investment.
b. increase interest rates and increase investment.
c. decrease interest rates and decrease investment.
d. decrease interest rates and increase investment.
a
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Tariffs and import quotas differ in that
A) one is a form of trade restriction, while the other is not. B) one is a tax, while the other is a limit. C) one is imposed by the government, while the other is imposed by the private sector. D) one is legal, while the other is not.
Suppose Gina gives up a job paying $30,000 a year so that she can start her own pizza business. She takes $100,000 from her savings account (which paid a 6 percent rate of interest) to pay for equipment, materials and labor, and after one year her total revenue is $70,000 . Gina's profit-related income is
a. $70,000 b. $40,000 c. $34,000 d. $30,000 e. $6,000
Empirical evidence suggests that advertising usually leads to an increase in the price for advertised products
a. True b. False Indicate whether the statement is true or false
An inferior good is best defined as a product for which the:
A. income elasticity of demand is negative. B. income elasticity of demand is zero. C. price elasticity of demand is zero. D. price elasticity of demand is negative.