Suppose Q = KaLb, if a + b > 1 the isoquants will be
a. upward sloping.
b. progressively closer together at higher quantities.
c. progressively further apart at higher quantities.
d. equally spaced.
b
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If a consumer increases her quantity of ice cream consumed by 100% when her income rises by 25%, then her income elasticity of demand for ice cream is
A) 8.0. B) 4.0. C) .25. D) .08.
Passive policy advocates rely on the economy's natural ability to correct itself in case of unemployment because of: a. the lack of any real concern for those who have no jobs
b. the conviction that unemployment is relatively harmless. c. the belief that active economic policy is likely to be either ineffective or harmful. d. the desire to await further economic data before intervening. e. the belief in the law of diminishing returns.
Most state governments finance their budgets through ____, and most local governments finance their budgets through ____
a. income taxes; property taxes b. property taxes; sales taxes c. sales taxes; property taxes d. income taxes; sales taxes
There is essentially no risk of default for U.S. government securities
a. True b. False Indicate whether the statement is true or false