Some luxury product manufacturers will purposefully raise prices on their goods in order to reduce sales volume. This strategy may successfully increase sales revenue if the luxury goods are subject to the ________ effect and have relatively ________ demand.
A. bandwagon; elastic
B. snob; inelastic
C. bandwagon; inelastic
D. snob; elastic
B. snob; inelastic
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If planned aggregate expenditure equals GDP, the economy is in macroeconomic equilibrium
Indicate whether the statement is true or false
The Heckscher-Ohlin, factor-proportions model lends support to the argument that
A) trade tends to worsen the conditions of unskilled labor in rich countries. B) trade tends to worsen the conditions of owners of capital in rich countries. C) trade tends to worsen the conditions of workers in poor countries. D) trade tends to worsen the conditions of workers in rich countries. E) trade tends to worsen the conditions of highly skilled workers in rich countries.
If the federal government is running a budget surplus,
a. its expenditures must be greater than its revenues. b. the supply of money will decline. c. it will be able to reduce its outstanding debt. d. the U.S. Treasury will have to borrow additional funds in order to cover the surplus.
What is the best measure of the value of output of an economy?
A) NNP B) GNP C) GDP D) the GDP deflator