If price falls, what happens to the demand for a product?
a. It decreases.
b. Uncertain--economic theory has no answer to this question.
c. It does not change.
d. It increases.
c. It does not change.
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Social Security was intended to
A. cover all of the income necessary for retirement. B. provide a safety net of retirement income to which recipients would add their savings and pensions. C. provide retirement income for only those without private pensions. D. provide retirement income for only those who did not save for themselves.
A correct formula (dropping all minus signs) for the calculation of the elasticity of demand between point Q1, P1 and point Q2, P2 is
A. [(P2? P1)/(P2 + P1)]/[(Q2? Q1)/(Q2 + Q1)]. B. [(P2? P1)/P1]/[(Q2? Q1)/Q1]. C. [(Q2? Q1)/(Q2 + Q1)]/[(P2? P1)/(P2 + P1)]. D. [(Q2? Q1)/Q2)]/[(P2? P1)/P2].
The low point in the business cycle is referred to as the
A) expansion. B) boom. C) trough. D) peak.
A "easy" money, tight "fiscal" policy combination will be preferred by society which values
A) low growth rates, but more goods and services in the future. B) public goods today greater than private goods in the future. C) private goods today more than public goods in the future. D) public and private goods in the future more than public and private goods today.