According to supply-side economists, government regulation of factor markets, such as OSHA,
A. Decreases production costs and causes AS to decrease.
B. Increases production costs and causes AS to decrease.
C. Increases production costs and causes AS to increase.
D. Decreases production costs and causes AS to increase.
Answer: B
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Free riders often result in
A. overallocation of resources. B. competitive markets. C. scarcity of time. D. market failure.
Average fixed costs of production
A) will rise at a fixed rate as more is produced. B) remain constant. C) graph as a U-shaped curve. D) fall as long as output is increased.
Using the above table, a unit tax of $2 is imposed on the product. How much of the tax is paid by the producer?
A) $2 B) $1 C) $3 D) unable to determine
Those who prefer that the Fed react to negative supply shocks by tolerating higher rates of inflation as a means of moderating a recession are called
a. inflation doves b. inflation hawks c. monetarists d. Keynesians e. hard headed and soft hearted