In the early 2000s, the George Bush administration passed a series of tax cuts and spending increases to fight a recession. This combination of policies most likely:
A. had no effect on the trade deficit.
B. decreased the U.S. trade deficit.
C. had an unpredictable effect on the trade deficit.
D. increased the U.S. trade deficit.
Answer: D
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The characteristic of games whereby the outcome of the game depends not only on what you do but on what the other players do in response is called
A) strategic interaction. B) mutual interdependence. C) optimal choice analysis. D) decision theory.
Governments usually provide national defense from tax funds because
A) everyone wants national defense. B) national defense benefits everyone. C) more security is better than less. D) it is hard to supply national defense exclusively to the people who willingly pay for it.
Which of the following is emphasized by supply-side economics?
a. The impact of budget deficits on interest rates and aggregate demand. b. The impact of government spending on aggregate demand, output, and employment. c. The impact of marginal tax rates on aggregate supply. d. The impact of budget deficits on the rate of taxation in the future.
Refer to the above graph. Consider a monopolist in short-run equilibrium. This monopolist has total fixed cost equal to area:
A. ABED. B. ADFC. C. 0CFQ. D. BEFC.