When the price of a normal good falls, then:
a. both the income and substitution effects combine to cause the quantity demanded to increase.
b. the substitution effect will cause people to buy more because the good is relatively less expensive.
c. the income effect will cause people to buy more because of the increased purchasing power associated with the lower price.
d. all of these.
d
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The sustainable upper limit of real GDP is a level of GDP that is
A) greater than potential GDP, but by how much greater is unknown and controversial. B) less than potential GDP, but by how much less is unknown and controversial. C) potential GDP. D) determined only by what is the full employment equilibrium in the labor market. E) None of the above answers is correct because there is no sustainable upper limit to real GDP because real GDP can always be increased.
Refer to Table 11-4. In the table above, which countries are consistent with the predictions of the economic growth model?
A) all four countries B) Japan and Guatemala C) only Japan D) Botswana and Thailand
R&D is an aspect of a firm's:
A. structure. B. performance. C. conduct. D. environment.
If C = $500, I = $150, G = $100, NX = $40, and GNP = $800, how much is NFP?
A. $5 B. $10 C. -$5 D. -$10