A movement along a consumption function is caused by:
A. a change in households' real assets.
B. a change in interest rates.
C. changes in households' disposable incomes.
D. expectations of price changes.
Answer: C
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All of society's applied knowledge on how to produce goods and services is
A) held by university professors. B) called technology. C) opportunity cost. D) efficiency.
Medical malpractice law is designed to
a. encourage physicians to act as responsible agents for their patients b. punish those providers guilty of intentional misconduct c. provide an income for the insurance firms who sell malpractice insurance d. none of these choices
Suppose the nominal interest rate is 5 percent, the tax rate on interest income is 30 percent, and the after-tax real interest rate is 0.8 percent. Then the inflation rate is 2.7 percent
a. True b. False Indicate whether the statement is true or false
"Tax cuts, by providing incentives to work, save, and invest, will raise employment and lower the price level." This argument is made by the:
A. Keynesian economists. B. supply-side economists. C. classical economists. D. monetarists.