How does a tax cut affect the expenditure schedule?
a. It causes movement to the left along the schedule.
b. It causes the schedule to shift upward.
c. It causes movement to the right along the schedule.
d. It causes the schedule to shift downward.
b
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As the U.S. price level rises relative to price levels in other countries, U.S. _____
a. consumption and net exports will both decrease b. consumption and net exports will both increase c. consumption would increase and net exports will decrease d. consumption would decrease and net exports will increase e. consumption and net exports will remain constant
An increase in the output price will increase the firm's demand for labor, all else equal
a. True b. False Indicate whether the statement is true or false
In an increasing-cost industry, more supplies can be obtained by paying a higher price for them or by using ______.
a. more efficient resources b. lower-quality resources c. substitute resources d. higher-quality resources.
Scarcity exists because
A) the majority of people in the world are poor. B) people are too greedy and refuse to share what they have with others. C) human wants exceed what can be produced with the limited resources available. D) not enough new technology is being used to eliminate scarcity.