If the price of Chinese food decreases, then the demand for chopsticks decreases because they are complementary goods
Indicate whether the statement is true or false
F
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In the specific factors model, a 5% increase in the price of food accompanied by a 5% increase in the price of cloth will cause ________ in the welfare of labor, ________ in the welfare of the fixed factor in the production of food, and ________ in
the welfare of the fixed factor in the production of cloth. A) no change; no change; no change B) an increase; an increase; an increase C) a decrease; an increase; an increase D) an increase; a decrease; a decrease E) a decrease; a decrease; a decrease
One of the main conclusions of Keynes in The General Theory of Employment, Interest, and Money is that the economy
a. will usually be at full employment. b. will not automatically gravitate to full employment. c. will automatically move quickly toward full employment without inflation. d. is usually on the verge of a major depression or hyperinflation.
A local government operates a city recreation center with a pool and tennis courts. The center is financed through $50 annual membership fees (required for members to use it). This type of financing is an example of a
a. head tax. b. excise fee. c. user charge. d. progressive tax.
In computing GDP, market prices are used in the calculations because a. market prices are constant over time
b. market prices do not reflect how prices change over time. c. market prices are consistently free of inflation. d. market prices can be used to combine the variety of goods and services produced in an economy into a single measure.