Tag: Economics – Others

Suppose that the economy is suffering inflation. The best fiscal policy option is to:decrease government purchases.lower the real interest rate.lower tax rates.increase the investment tax credit.

The phrase “league of friendship” refers to what?
A union of Native American tribes
Britain’s relationship with the colonies
The original United States of America
George Washington’s Continental Army

Refer to Table 8-4. Consider the data above (in billions ofdollars) for an economy: Gross domestic product (in billionsof dollars) for this economy equals$2,200.$2,100.$1,600.$1,400.

The marginal rate of substitution is calculated asthe rate of change of the utility function.the slope of the indifference curve.the percentage change in x divided by the percentage change in Y.

Two or more states reach a legally binding agreement about how to solve a problem that crosses state lines through:
Group of answer choices
a treaty.
a bill of attainder.
statutory bargain.
a compact.

The production possibilities frontier shifts inward if
A. resources are destroyed.
B. the labor force increases.
C. the capital stock increases.
D. technology improves.
E. unemployment increases.

Question 8
Which of the following is not a reason for the increased importance of logistics?
reduction in economic regulation
globalization of trade
technological advances
all of the above are reasons

A supply curve shows that as prices rise the:
number of products demanded stays the same.
quantity of products produced rises.
quantity of products produced declines.
equilibrium point shifts upward.

Show me the steps to solve If the government imposes a price floor that is below the equilibrium price, then the market will experience: an equilibrium. a shortage. an excess supply. no scarcity.
Step-by-step solution
Define a price floor: a legal minimum price sellers are allowed to charge for a good or service.
Determine binding vs non-binding: a price floor is binding only if it is set above the equilibrium price; if it is below equilibrium, it is non-binding.
When the floor is non-binding (below equilibrium), the market-clearing price and quantity remain determined by supply and demand, so transactions occur at the equilibrium price.
Since the floor does not constrain the market, there is no shortage or excess supply; the market stays at equilibrium.
Correct answer:
an equilibrium.

A good is said to be _____ if the income elasticity of demand for the good is _____.
Question 2 options:
a) inferior; positive
b) a substitute; negative
c) normal; positive
d) positive; positive