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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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?
If price goes up 20 percent and quantity demanded declines by 10 percent, total revenue will rise.
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.