To eliminate an inflationary gap, Keynesian theory indicates that government should
A) increase taxes.
B) decrease taxes.
C) increase government purchases.
D) decrease government purchases.
E) either a or d
E
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The above figure shows the market for laptops. Which of the following causes a movement from B to A?
A) an increase in the number of laptop manufactures and sellers B) an increase in the price of laptops C) an increase in the productivity of the workers manufacturing laptops D) a decrease in the price of laptops E) an increase in the cost of hard drives
In the figure above, which of the following represents a real flow of a factor of production?
A) Labor B) Wages C) Goods bought D) Services sold E) Firms' expenditures on factors of production
Sellers are more willing to supply a good or service for which the profit is low than to supply a good or service for which the profit is high
a. True b. False Indicate whether the statement is true or false
Refer to the table below. If the price of A decreases, while the price of B and the consumer's income stay the same, we would expect:
The table below shows the marginal-utility schedules for goods A and B for a hypothetical consumer. The price of good A is $1 and the price of good B is $2. The income of the consumer is $8.
A. MU/P of A to increase, and the consumers will thus buy less of B
B. MU/P of A to increase, and the consumers will thus buy less of A
C. MU/P of A to decrease, and the consumers will thus buy less of B
D. MU/P of A to decrease, and the consumers will thus buy less of A