The graph illustrates the market for computers. If the number of buyers of computers increases and technology advances, you predict that the
A) equilibrium price of a computer will fall.
B) equilibrium quantity of computers might increase, decrease, or not change.
C) equilibrium price of a computer will rise.
D) equilibrium quantity of computers will decrease.
E) equilibrium quantity of computers will increase.
E
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Refer to Figure 23-1. At point J in the figure above, which of the following is true?
A) The economy has achieved macroeconomic equilibrium. B) Actual inventories are less than planned inventories. C) GDP will be decreasing. D) Aggregate expenditure is less than GDP.
Vertical equity and horizontal equity are associated with
a. the benefits principle of taxation. b. the ability-to-pay principle of taxation. c. taxes that have no deadweight losses. d. falling marginal tax rates.
Which statement is TRUE, according to economist Joseph Stiglitz?
A. IMF policies are sensitive to the human suffering its policies could create. B. The IMF takes a "hands off" approach as to how a country uses the money it is lent. C. The IMF was founded on the belief that there was a need for international pressure for countries to have expansionary economic policies. D. The IMF was founded on the belief that there was a need for international pressure for countries to cut deficits, raise taxes and interest rates.
Which of the following is NOT a factor that determines the price elasticity of demand?
A) the amount that suppliers have made available B) the percentage of a consumer's total budget spent on the good C) the existence of substitutes D) the length of time allowed for adjustments to change in the price of the commodities