During 2001-2012, the federal budget deficit
a. expanded and real government spending increased rapidly, indicating that fiscal policy was restrictive.
b. expanded and real government spending increased rapidly, indicating that fiscal policy was expansionary.
c. declined and real government spending fell, indicating that fiscal policy was restrictive.
d. declined and real government spending fell, indicating that fiscal policy was expansionary.
B
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Economists consider an economy to be at "full employment" when
A) the unemployment rate equals the natural rate of unemployment. B) there is no structural unemployment. C) there is no frictional unemployment. D) there is only a small amount of cyclical unemployment.
Total variable costs
A. initially increase as output increases, and then decrease. B. always increase with output. C. initially decrease and then increase with output. D. always decrease with output.
Answer the following statements true (T) or false (F)
1. If a firm produces zero output in the short run, then its profits will also be zero. 2. In the long run, a firm can increase its output quantity, but it will be limited by the size of its existing production plant. 3. When diminishing marginal returns starts occurring, the addition of successive units of a variable resource to a fixed resource will cause the firm's production to diminish. 4. Over the range of positive, but diminishing, marginal returns for an input, the total product curve increases at a decreasing rate. 5. If the average product of labor equals 4 at all levels of output, the marginal product of labor is also equal to 4 at all levels of output.
Which is the more efficient use of one's tight budget: going to a first-run movie at $7.50 or waiting for the video to be available through Netflix?
A) Going to the first-run movie B) Waiting for the video C) Doing neither, especially if one's budget is tight. D) It depends on the chooser's own evaluations of costs and benefits.