If people buy less of a good at every price when their incomes fall, then that good is a normal good
Indicate whether the statement is true or false
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If a government wants to pursue an expansionary fiscal policy, then a tax cut of a certain size will be more expansionary when the
A. unemployment rate is low. B. economy's MPS is large. C. economy's MPC is large. D. economy's MPC is small.
Using the data in the above table, the average total cost of producing 16 units per day is
A) $1.25. B) $6.25. C) $7.00 D) $7.50.
Supply-side tax cuts designed to increase investment spending are attractive in theory, but in practice
a. the effect is the opposite of what theory suggests. b. are less useful, because they take a long time to increase the capital stock. c. they have no effect on the capital stock in the short or long run. d. are powerful in the short run as capital stock rapidly increases, but the effect tapers off in the long run.
We say that a country completely specializes in production when it spends all of its resources producing:
A. those goods it has an absolute advantage in producing. B. what it can make more of than anyone else. C. a particular good. D. only what other countries need.