Corey has a blue sweater and a denim jacket. On some days he chooses to wear the sweater but on others he chooses to wear the jacket. Economists would most likely conclude that:
A. Corey is irrational if he wears different clothing on different days.
B. Corey is indifferent between wearing a jacket or a sweater.
C. Corey's preferences have not changed, but other factors may have changed such as the temperature outside.
D. Corey's preferences have changed.
Answer: C
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Answer the following statement true (T) or false (F)
Which of the following would most likely induce the Federal Reserve to conduct expansionary monetary policy? A significant decrease in
A) business taxes. B) oil prices. C) investment spending. D) income tax rates.
The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment. B. exogenous spending. C. recessionary gaps. D. expansionary gaps.
What is a perfectly competitive firm's short-run supply curve?
What will be an ideal response?