In the Keynesian model, suppose the Fed wants to keep output unchanged. If the IS curve shifts to the left, and the Fed acts to keep output unchanged, then
A) taxes will increase.
B) the money supply will decline.
C) the real interest rate will decrease.
D) taxes will decrease.
C
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Last year when John graduated and received a 20 percent pay increase, the average number of restaurant meals he consumed rose from one a week to three a week. Hence his income elasticity for restaurant meals is
A) 0.50. B) -0.50. C) 5.00. D) -5.00.
How much food production would Calvin lose in a day in order to produce 2 yards of cloth?
a. 2 pounds
b. 1-1/2 pounds
c. 1 pounds
d. 1/2 pound
When total product is increasing at a decreasing rate, marginal product is:
A. positive and increasing. B. positive and decreasing. C. constant. D. negative.
Pure monopoly refers to:
A. any market in which the demand curve to the firm is downsloping. B. a standardized product being produced by many firms. C. a single firm producing a product for which there are no close substitutes. D. a large number of firms producing a differentiated product.