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Unformatted text preview: st. 10. Consider the market for physical textbooks. Which of the following would increase both equilibrium price and quantity? A. online textbooks become cheaper B. automation reduces the amount of time it takes to print textbooks C. average college tuition falls D. paper becomes more scarce 11. When considering economic growth, many policy makers focus on real GDP per capita because it takes into account the potentially distorting effects of A. inflation and population change. B. exchange rates and capital flows. C. externalities and pollution. D. interest rates and unemployment. 12. Which of the following is FALSE for a closed economy? A. Public saving is government spending minus taxes. B. Private saving is what remains of household income after accounting for taxes and consumption spending. C. Saving equals investment. D. National saving equals private saving plus public saving. E. [All of the above are true] 13. Purdue has a wage contract that stipulates a yearly wage increase for...
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- Fall '08