If cherries cost twice as much as dates, and the last cherry consumed provides twice as much utility as the last date consumed, the consumer is maximizing utility
a. True
b. False
Indicate whether the statement is true or false
True
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The relationship between education and productivity is easily quantified because causation clearly flows from education to increased productivity
a. True b. False
The track record of foreign assistance
a. is not very clear. b. shows that it have been very successful in helping poor countries. c. has enhanced the protection of private property rights in less developed countries. d. has drastically reduced corruption in less developed countries. e. has made most economists skeptical.
Gross Domestic Product equals $1.2 trillion. If consumption equals $690 billion, investment equals $200 billion, and government spending equals $260 billion, then:
Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.
A. B; no output B. D; an expansionary C. B; recessionary D. D; a recessionary