If we observe a decrease in the price of a good and a decrease in the amount of the good bought and sold, this could be explained by a(an):
a. increase in the supply of the good. b. increase in the demand for the good.
c. decrease in the demand for the good. d. decrease in the supply of the good.
c
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The government has hired you to advise them on the merits of a project that is being proposed. The project is expected to generate benefits of 14 million dollars today, 5 million dollars in one year from today, and 1 million dollars in two years from today. (These are the only years of concern.) The project costs nothing today, but will cost 20 million dollars in two years. Assume the interest rate is 10%. If the benefit-cost ratio is greater than 1, the project should be allowed. What is your policy suggestion?
What will be an ideal response?
A shortage results when a
A. nonbinding price ceiling is removed from a market. B. binding price ceiling is imposed on a market. C. nonbinding price ceiling is imposed on a market. D. binding price ceiling is removed from a market.
Over ½ of all the men and ¼ of all the women in the United States
A. work for the same employer for at least 15 years. B. work for the same employer for at least 10 years. C. work for the same employer for at least 20 years. D. work for the same employer for at least 5 years.
If the LM curve is vertical and government spending rises by G, in the IS-LM analysis, then equilibrium income rises by:
What will be an ideal response?