Refer to the accompanying figure, which shows the market for cups of coffee. What might cause a shift from the original demand curve to the new demand curve?
A. An expectation that coffee prices will fall in the future.
B. An increase in consumers' tastes for coffee.
C. A decrease in the price of tea.
D. An increase in the price of coffee creamer.
Answer: B
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If in the economy, business saving equals $300 billion, household saving equals $10 billion and government saving equals -$200 billion, what is the value of national saving?
A. $210 billion B. $310 billion C. $110 billion D. $10 billion
In the United States, the official poverty line is based on:
A. the price of clothing. B. the average income of the lowest quartile of income earners. C. the price of food. D. the price of housing.
The IMF offers loans to developing countries in times of balance of payment constraints, but the IMF also faces strong criticisms because:
A. contractionary fiscal policy and expansionary monetary policy tend to be ineffective against balance of payment constraints. B. contractionary fiscal and monetary policies are always undesirable for any developing country. C. it employs economists that know little about developing countries and their economic affairs. D. the conditions tend to be procyclical, therefore worsening the recessions.
The prices of most services have risen much faster than inflation in recent years because
A. wages and salaries of service providers have risen much faster than inflation. B. wages and salaries of service providers have risen, but their productivity has not. C. the productivity of service providers has risen dramatically. D. the demand for services has risen.