Increases in autonomous expenditure induce ________ in aggregate expenditure thereby making the multiplier ________
A) further increases; greater than one
B) further increases; unnecessary
C) further increases; less than one
D) a decrease; less than one
E) a decrease; greater than one
A
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When your grandfather keeps a bundle of $100 dollar bills behind a brick in the basement, this is an example of dollars serving as:
A. a store of value. B. a medium of exchange. C. bank reserves. D. a unit of account.
Which of the following statements about leading economic indicators is true?
a. Most people refer to them before making any important spending decision. b. They are the only economic indicators available to economists c. They indicate when an economy is in a recession or an expansion. d. They foreshadow turning points in the business cycle. e. They can predict precisely when turning points in an economy will occur.
If marginal product increases with an increase in the variable input, the marginal cost must also increase as more units of the input are hired
a. True b. False Indicate whether the statement is true or false
The fact that some people will work hard to earn a lot of money while others will be content with much less income indicates that
a. worker preferences are an important source of earning differentials. b. economics ranks one set of worker preferences as more desirable than another. c. some people can be paid less for doing hard work while others have to be paid a premium for doing a similar task. d. skill levels of laborers are a minor consideration in wage rate determination.