An increase in the interest rates in a country:
A) reduces net exports.
B) does not affect net exports.
C) increases net exports.
D) results in a an outflow of capital from the country.
A
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Suppose that Rockport Shoes planned to produce and sell $200 million of shoes in 2003, but by year's end was able to sell only $180 million. The remaining unsold $20 million would be recorded as
a. personal consumption expenditures b. a business loss c. an addition to business inventory d. an increase in disposable income e. a part of the underground economy
If Rita's labor-supply curve is downward-sloping, then for Rita a. an increase in the wage creates an income effect that is greater than the substitution effect. b. an increase in the wage creates a substitution effect that is greater than the income effect. c. leisure and consumption are perfect substitutes
d. leisure and consumption are perfect complements.
Assume an economy experiences an increase in productivity that occurs as a result of a more widespread implementation of a major technological breakthrough. Given this information, we would expect which of the following to occur?
A) aggregate demand would not change B) aggregate demand would shift to the right C) aggregate demand would shift to the left D) both the aggregate demand and aggregate supply curves would shift to the left
Price elasticity of supply is defined as
A) the quantity supplied divided by the quantity demanded. B) the change in the quantity supplied divided by the change in the quantity demanded. C) the percentage change in the quantity supplied divided by the percentage change in price. D) the percentage change in the quantity supplied divided by the percentage change in the quantity demanded.