Latest Questions & Answers

Q: Without an increase in price, an increase in demand will lead

Without an increase in price, an increase in demand will lead to a) a shortage. b) a surplus. c) socialism. d) equilibrium.

Q: Joseph Schumpeter coined the phrase “creative destruction.” The idea of

Joseph Schumpeter coined the phrase “creative destruction.” The idea of creative destruction is that a) people need to be forced from their comfort zone in order to make crucial decisions that enhance...

Q: If a program’s cost rises only with inflation and increases in those

If a program’s cost rises only with inflation and increases in those that qualify for the program, this represents a) an increase in spending using baseline budgeting. b) a decrease in spending usi...

Q: Of these, economists consider this the worst: a)

Of these, economists consider this the worst: a) inflation of 5 percent. b) recession. c) deflation of 5 percent. d) depression.

Q: In a diagram of perfect competition, the marginal revenue line moves

In a diagram of perfect competition, the marginal revenue line moves up and down when there is exit and entry, respectively, because a) the market demand for the good rises and falls when there is ex...

Q: If you were to conclude, after carefully examining data and using

If you were to conclude, after carefully examining data and using proper evaluation techniques, that a tax credit for attending college benefits the poor more than a tax deduction (of equal total cost...

Q: Local telephone service was once an area in which consumers had no

Local telephone service was once an area in which consumers had no choices. Many young people no longer use “landlines,” preferring instead to use their cellular phones. This means that the market has...

Q: When choosing to limit trade, a country can impose a tax

When choosing to limit trade, a country can impose a tax on imported goods. This is called a) an estate tax. b) a tariff. c) a quota. d) a capital gains tax.

Q: Income inequality, when measured as the percentage of total income going

Income inequality, when measured as the percentage of total income going to the top 1 percent, increased most rapidly during the a) 1950s. b) 1960s. c) 1980s and 1990s. d) 2000s.

Q: A 60-month car loan (where no down payment was

A 60-month car loan (where no down payment was made) with a 6 percent interest rate and a monthly payment of $500 would allow the borrower to buy a a) $35,500 car. b) $30,000 car. c) $25,863 car. d...