Refer to Figure 7.1. Suppose the city passes an ordinance banning loud music, and this directly impacts Angus's legal ability to play his bagpipes. In response to this ordinance, Angus agrees to pay Dudley $225 each day to not call the police
Compared to the original scenario where there was no ordinance banning loud music, in this situation the size of the economic pie will A) shrink.
B) not change.
C) grow.
D) More information is needed to determine the size of the economic pie.
B
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In Figure 4-6 above, with IS0 shifting to IS1 against the upward-sloping LM curve, crowding-out is the result that
A) income stays at YO3. B) income rises to Y1 instead of to Y2. C) income rises to Y1 instead of staying at YO3. D) income rises to Y2 instead of to Y1.
The objective of bank management is to
a. maximize stockholders' profits by making risky investments and giving loans to borrowers who will pay the highest interest rates. b. refuse to make risky loans and make loans only to the safest borrowers. c. invest in U.S. government securities and make loans only to established businesses. d. strike the appropriate balance between the attraction of bank profits and the need for bank safety.
Which primary trade partner of India suffered setbacks that ultimately helped lead India to embark on economic reform?
A) The United Kingdom B) The United States C) The Soviet Union D) South Korea
The ________ demonstrates the roles played by households and firms in the market system
A) production possibilities frontier B) circular flow model C) theory of comparative advantage D) business cycle