How does an increase in income affect the market of iPads (normal good)?
a. The demand curve for iPads to shift to the right
b. The demand curve for iPads to shift to the left
c. The supply curve for iPads to shift to the right
d. The supply curve for iPads to shift to the left
a
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Real GDP in the country of Oz is growing at 5 percent and its population is growing at 2 percent. In the country of Lilliput, real GDP is growing at 4 percent and its population is growing at 0.5 percent. Thus,
A) real GDP per person in Oz is growing at a faster rate than in Lilliput. B) real GDP per person in Lilliput is growing at a faster rate than in Oz. C) real GDP per person in Lilliput is growing at the same rate as in Oz. D) real GDP per person in Lilliput is growing at a rate that is not comparable to that in Oz. E) We need more information to determine if real GDP per person in Lilliput is growing faster or slower than real GDP per person in Oz.
The concept of rational ignorance can explain why the government might provide more than the efficient quantity of a public good
Indicate whether the statement is true or false
In the Keynesian cross diagram, a decrease in investment spending because companies become more pessimistic about investment profitability causes the aggregate demand function to shift ________ and the equilibrium level of aggregate output to
________, everything else held constant. A) up; rise B) up; fall C) down; rise D) down; fall
A price ceiling is
a. the lowest price that the law will allow to be charged in the market b. the highest price that the law will allow to be charged in the market c. the price that must be charged in the market d. imposed if the government believes the equilibrium price is too low e. applicable only in nonessential goods markets