Which of the following is a wealth effect that would most likely cause a decrease in the quantity of real GDP demanded in a nation, ceteris paribus?
a. France experiences a decrease in the general level of prices in its economy.
b. South African consumers become richer following a decline in the overall price level.
c. The Mexican economy experiences several years of increasing price levels.
d. U.S. consumers are encouraged to spend more due to low interest rates.
c. The Mexican economy experiences several years of increasing price levels.
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Which of the following best explains why marginal cost eventually increases as output increases?
a. economies of scale occur b. average cost increases c. total cost increases d. marginal product decreases e. fixed cost is constant
Taxation can promote good social policy while minimizing economic inefficiency
a. True b. False Indicate whether the statement is true or false
When Republicans and Democrats offer similar platforms in an election campaign, a likely explanation is the
a. Arrow impossibility theorem. b. Condorcet paradox. c. median voter theorem. d. fact that politicians are more interested in the national interest than their own self-interest.
A claim on the net income and assets of a corporation is called:
a. an annuity. b. an initial public offering or IPO. c. a share of corporate stock. d. a dividend.