Which of the following statements best describes a normal good?
A) A normal good is a good that is rationed by the government.
B) A normal good is a good that is readily available in the market.
C) A normal good is a good whose supply increases as its price decreases.
D) A normal good is a good whose demand increases with an increase in consumers' income.
D
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For certain intangibles that cannot be measured, it is best to
A. guess. B. exclude them from cost benefit analysis, and then calculate how large they must be to reverse the decision. C. reevaluate using the Hicks-Kaldor criterion. D. leave it to the private sector to decide on value.
The GDP Deflator reflects
a. the prices of all final goods and services currently produced domestically, as does the CPI. b. the price of a fixed basket of goods and services purchased by a typical consumer, as does the CPI. c. the prices of all final goods and services currently produced domestically, while the CPI reflects the price of a fixed basket of goods and services purchased by a typical consumer. d. the price of a fixed basket of goods and services purchased by a typical consumer, while the CPI reflects the prices of all final goods and services produced domestically.
As government debt increases,
a. Congress will reduce spending by an equal proportion. b. the government must spend more revenue on interest payments. c. a trade-off with government deficits is inevitable. d. tax rates must rise to cover the deficit.
If the exchange rate, dollars per euro, is above its equilibrium level, it will heighten the possibility that France will experience a trade deficit
Indicate whether the statement is true or false