Suppose prices for new homes have risen, yet sales of new homes have also risen. We can conclude that:
A. the demand for new homes has risen.
B. the law of demand has been violated.
C. new firms have entered the construction industry.
D. construction firms must be facing higher costs.
Answer: A
Economics
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Explain the differences between "human capital," "financial capital," and "capital."
What will be an ideal response?
Economics
The critical issue of macro instability, when there is no government intervention and no foreign trade, is whether
A. Investment and consumption will exceed disposable income. B. Savings and taxes will be equal. C. spending injections will equal spending leakage at full employment. D. Consumption and savings lead to the ideal interest rate.
Economics