If the fiscal policy makers aim to increase aggregate demand, they will likely enact:
A. contractionary fiscal policy.
B. expansionary fiscal policy.
C. contractionary monetary policy.
D. expansionary monetary policy.
Answer: B
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If there is an excess supply of bonds at a given price of bonds, then
A) the interest rate will fall. B) the interest rate will rise. C) the price of bonds will fall. D) the interest rate may rise or the interest rate may fall depending upon the reasons for the excess demand for bonds.
Which of the following ideas were central to the conclusions drawn by Thomas Malthus in his 1798 "Essay on the Principle of Population"?
A) Short-run time period B) Shortage of labor C) Law of diminishing resource availability D) Law of diminishing returns
More than 50% of the elderly receive private pensions
Indicate whether the statement is true or false
An industry in which an increase in output leads to a reduction in long-run per-unit costs is a(n)
A) increasing-cost industry. B) constant-cost industry. C) break-even cost industry. D) decreasing-cost industry.