When Keynes famously said, "In the long run we are all dead", he was trying to make the point that:
A. economic downturns are unavoidable.
B. economic downturns will not end unless the government increases spending.
C. the short-run impacts of government policies matter.
D. the government's response to economic downturns is unimportant.
Answer: C
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Hardcover books usually cost much more to purchase than do otherwise identical paperback editions of the same book because
A) hardcover books typically last longer. B) the demand for hardcover books is typically less elastic than the demand for paperback books at the same price. C) the marginal cost of producing hardcover books typically rises as output increases. D) the marginal cost of producing paperback books typically falls as output increases. E) the mergers in the book-publishing industry have encouraged price discrimination.
You earn $500 a month, currently have $200 in currency, $100 in your checking account, $2,000 in your savings accounts, $3,000 worth of illiquid assets and $1,000 of debt. You have
A) money = $2,300, annual income = $6,000, and wealth = $5,000. B) money = $300, annual income = $6,000, and wealth = $4,300. C) money = $300, annual income = $6,000, and wealth = $5,000. D) money = $200, annual income = $500, and wealth = $4,300.
Any two of these events in questions 1 and 2 occur together? (Draw the diagrams!)
What will be an ideal response?
A decrease in the relative price of economics textbooks will raise the aggregate quantity of an economy's goods and services demanded
a. True b. False Indicate whether the statement is true or false