Government spending that shifts income from one group of society to another, such as price subsidies and cash payments, is known as
a. merit goods spending
b. debt servicing
c. transfer payments
d. countercyclical payments
e. social spending
C
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Other things equal, a decrease in the price level will
A) shift the AS curve to the left. B) shift the AS curve to the right. C) cause a movement up the AS curve. D) cause a movement down the AS curve.
A lake supports a delicious variety of fish. The land around the lake is owned by two fisherman, so by state law both are free to fish as much as they like. Let FA and FB be the number of fish each catches, respectively. Suppose the price of fish is 100 - FA - FB. Given this demand curve, it turns out that marginal revenue is 100 - 2FA - FB for fisherman A and 100 - FA - 2FB for fisherman B. What
is the total number of fish by both in the Nash equilibrium? a. 30 b. 45 c. 60 d. 90
Oligopolists may well be able to reach their preferred, cooperative outcome if
a. the number of oligopolists is large. b. they learn that a Nash equilibrium is in their best long-term interests. c. a sufficient number of firms can be persuaded to lower their prices. d. the game they play is repeated a sufficient number of times.
Which of the following is not a basic monetary policy tool used by the Fed?
A. Deposit insurance B. The reserve requirement C. The discount rate D. The sale and purchase of Treasury bonds