The opportunity cost of a given investment is the potential earnings forfeited by tying up money in the investment
a. True
b. False
Indicate whether the statement is true or false
True
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If people become pessimistic about the state of the economy, the consumption function shifts downward
a. True b. False Indicate whether the statement is true or false
If a new insect invasion devastates crops all across the United States, which of the following would most likely occur in the short run?
a. Unit costs would decrease and the economy would move upward along the aggregate supply curve. b. Unit costs would increase and the aggregate supply curve would shift downward. c. Unit costs would increase and there would be movement along the aggregate supply curve. d. Unit costs would decrease and the aggregate supply curve would shift upward. e. Unit costs would increase and the aggregate supply curve would shift upward.
Suppose that you charted the rate of unemployment on the same graph. How would you expect the graph of unemployment to look in comparison?
a. It would be similar but shifted slightly to the right.
b. It would be inverted but shifted slightly to the right.
c. It would be similar but shifted slightly to the left.
d. It would be inverted but shifted slightly to the left.
If net taxes paid by households increase:
A. public saving will decrease. B. transfer payments to households will decrease. C. private saving will decrease. D. private saving will increase.