The supply of labor in the classical system is a function of the
a. marginal product of labor.
b. real wage.
c. the public's preference for leisure.
d. money wage.
e. b and c
E
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If the price of a six-pack of Pepsi falls from $4 to $3 and the quantity purchased increases 80 percent, then demand is
A) inelastic. B) elastic. C) unit elastic. D) perfectly inelastic. E) perfectly elastic.
Assume the economy is operating at a real GDP above full-employment real GDP. Keynesian economists would prescribe which of the following policies?
a. Expansionary b. Nonintervention c. Passive monetary policy d. Contractionary
A budget surplus can be used to cut taxes or pay off old debt.
Answer the following statement true (T) or false (F)
Answer the question on the basis of the following data. All figures are in billions of dollars. Picture Gross Private Domestic Investment 46 Exports of the US 9 Disposable Income 190 Personal Saving 10 Government Purchases 84 Net Foreign Factors Income 10 Consumption of Fixed Capital 52 Dividends 13 Imports of the US 12 Taxes on Production and Imports 22 Personal Taxes 38 Social Security Contributions 23 Statistical Discrepancy 0 The economy characterized by the above data is:
a) experiencing inflation because disposable income exceeds personal income. b) experiencing declining production capacity because net investment is negative. c) in a depression because personal income exceeds disposable income. d) experiencing expanding production capacity because net private domestic investment is positive.