In a market economy, most of what we consume is obtained by
a. a command system
b. greed
c. altruism
d. exchange
e. central planning
D
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What effect would taxation have on real consumption spending when government spending is autonomous?
A) Taxation reduces real consumption spending. B) Taxation increases real consumption spending. C) Taxation causes both real consumption spending and planned real saving to increase. D) None of the above is correct.
If expected inflation increases, the short-run Phillips curve will shift to the left so that inflation will be higher at any given unemployment rate
a. True b. False Indicate whether the statement is true or false
Suppose that you open your own business and earn an accounting profit of $40,000 per year. When you started your business, you left a job that paid you a $25,000 salary annually. Also, suppose that you invested $70,000 of your own funds to start up your business. If the normal rate of return on capital is 5 percent, your economic profit is
A. -$55,000. B. -$11,500. C. $15,000. D. $11,500.
One feature of the new textbook market is that publishers face ________ fixed costs and ________ variable costs.
A. high; high B. low; low C. low; high D. high; low