In the long run, most economists agree that a permanent increase in government spending leads to
A) no decrease in private spending.
B) a decrease in private spending by less than the amount that government spending increased.
C) a decrease in private spending by the same amount that government spending increased.
D) a decrease in private spending by more than the amount that government spending increased.
Answer: C
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Answer the following statement(s) true (T) or false (F)
1. An outcome that is Pareto optimal is preferred by both players to all other possible outcomes. 2. A Nash equilibrium need not be Pareto optimal, and a Pareto-optimal outcome need not be a Nash equilibrium. 3. In the Prisoners' Dilemma game, the only outcome that is not Pareto optimal is also the game's only Nash equilibrium. 4. When a game is played sequentially, the first player will have an advantage over the second player. 5. A Cournot equilibrium arises when one player announces his strategy before the other.
If a consumer is at an optimum, consuming X and Y, and the price of Y increases, then to get to a new equilibrium the consumer must
A) purchase less X. B) purchase less of both X and Y. C) purchase more X. D) purchase more of both X and Y.
What is the difference between personal income and disposable personal income?
A. depreciation B. net U.S. income earned abroad C. indirect personal taxes and transfers D. the amount of personal income taxes
Currently about what percentage of the civilian labor force is unionized in the United States?
A. 55 percent B. 1 percent C. 12 percent D. 70 percent