People and organizations have to make choices about how to allocate time and money
because
An individual’s wealth constraint is determined by
a. the individual’s level of education
b. the facts that wealth is given and so she must give up one kind of wealth in order to
acquire another
c. overall conditions in the economy
d. the amount of wealth the individual chooses to hold in the form of money
e. the value of corporate stock
The four main categories of resources are
Suppose that the income elasticity of demand for fresh vegetables is 0.26. If buyers’
incomes rise by 10 percent, then
GDP is a flow variable because
a. all macroeconomic aggregates are flow variables
b. it measures the production that takes place over a period of time
c. it measures the amount of goods and services that exist at the end of a time period
d. the number of goods and services produced is usually a fixed number
e. it accounts for the goods and services transferred from one firm to another
Lorrie will receive a nominal wage increase of 10 percent this year. The inflation rate
was 5 percent last year and is predicted to be 8 percent this year. If the economic
forecast is correct, her real wage this year
a. will increase by approximately 2 percent
b. will increase by approximately 8 percent
c. will increase by approximately 5 percent
d. will remain the same
e. cannot be calculated without knowing the number of dollars by which her wage
increases
The cross-price elasticity of demand between butter and margarine is most likely
In the short run,
Which of the following is not a part of M1?
a. Cash in the hands of the public.
b. Demand deposits.
c. Traveler’s checks.
d. Money market mutual fund (MMMF) balances.
e. Corporate stocks.
An inferior good is
Increases in the interest rate reduce the multiplier effect of an increase in government
purchases.