In a binding situation,an increase in the Z factors
A. causes the AD curve to become horizontal.
B. does not shift the AD curve.
C. shifts the AD curve to the right.
D. shifts the AD curve to the left.
Answer: B
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The Bay Area subway system, BART, offers senior citizens discounted fares for BART rides. This suggests that BART authorities believe that senior citizens have a ________ demand for subway rides
A) less price elastic B) more income elastic C) more price elastic D) less income elastic
The main factors that discourage investment in capital and skills in developing countries are
A) political instability, insecure property rights. B) political instability, insecure property rights, misguided economic policies. C) political instability, misguided economic policies. D) political instability. E) insecure property rights, misguided economic policies.
Typically a firm's "economic profit" will be
What will be an ideal response?
Which of the following is not true about the composition of GDP in 2016?
A) The majority of consumer spending is on durable goods. B) Purchases made by state and local governments are greater than purchases made by the federal government. C) Imports are greater than exports. D) Business fixed investment is the largest component of investment.