Ceteris paribus, which of the following would you expect to have no effect on the demand curve for new automobiles?
A. An increase in the price of new automobiles.
B. A rise in the price of gasoline.
C. Consumer expectations that the price of new automobiles will be lower next year.
D. Consumer expectations that a significant recession will develop and last for a year.
Answer: A
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A planned economy would require decisions on the basis of
a. input-output tables b. corporate profits c. cost-benefit analysis d. government decisions e. all of the above
If the reserve ratio is .20, the money multiplier can be as high as
A. 20. B. 10. C. 5. D. 50.
During the period that many call the Great Recession:
A. GDP fell. B. there was a sharp decrease in consumer spending. C. unemployment rose. D. All of these are true.
If increasing your consumption of pizza from 3 to 4 slices increases your utility, which of the following must be true?
a. The marginal utility of the fourth slice of pizza is equal to the total utility of 4 slices of pizza. b. The marginal utility of the fourth slice of pizza is greater than the marginal utility of the third slice of pizza. c. The marginal utility of the fourth slice of pizza is positive. d. The marginal utility of the third slice of pizza is negative.