If the net benefit of Project A is $5 and that of Project B is $8, switching from Project A to Project B:
A) reduces the net benefit by $3.
B) increases the net benefit by $3.
C) increases the net benefit by $8.
D) decreases the net benefit by $8.
B
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The self-correcting tendency of the economy means that falling inflation eventually eliminates:
A. exogenous spending. B. recessionary gaps. C. expansionary gaps. D. unemployment.
If the price of chicken rises from $1.25 per pound to $1.75 per pound, if the demand curve is consistent with the law of demand, then the quantity of chicken demanded would be predicted to go from
A. 100 pounds to 125 pounds per day. B. 100 pounds to 75 pounds per day. C. 100 pounds to 100 pounds per day, because the price of chicken does not affect the quantity demanded. D. 100 pounds to 0 pounds per day, because consumers would stop purchasing chicken at a price above $1.25 per pound.
A value-added tax is a tax on consumption and not on personal income
a. True b. False Indicate whether the statement is true or false
"Left" gloves and "right" gloves provide a good example of
a. perfect substitutes. b. perfect complements. c. negatively sloped indifference curves. d. positively sloped indifference curves.