What happens typically to a budget deficit during an economic recovery?
A. It decreases because of tax changes.
B. It increases because of spending decreases.
C. It decreases automatically.
D. It increases automatically.
Answer: C
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Which of the following antitrust laws forbade firms to engage in price discrimination if the effect would lessen competition or create a monopoly?
A) the Cellar-Kefauver Act B) the Clayton Act C) the Robinson-Patman Act D) the Sherman Act
Featherbedding by unions is an attempt to
a. increase the demand for union labor b. increase the demand for non-union labor c. decrease the demand for union labor d. increase the supply of union labor e. increase the supply of non-union labor
In monopolistically competitive markets, economic profits ____, and ____ shifts the demand curve of the remaining firms to the ____
a. signal some remaining firms to exit; exit; right b. signal some remaining firms to exit; exit; left c. signal new firms to enter; entry; left d. signal new firms to enter; entry; right
Refer to the accompanying figure, which shows the market for cups of coffee. What might cause a shift from the original demand curve to the new demand curve?
A. An expectation that coffee prices will fall in the future. B. An increase in consumers' tastes for coffee. C. A decrease in the price of tea. D. An increase in the price of coffee creamer.