Among the following cases, the opportunity cost of crowding out is the smallest when the government spends dollars:
a. staffing the Internal Revenue Service hotline
b. printing stationery for new members of Congress.
c. placing photographs of the new President in government and diplomatic offices worldwide.
d. on Social Security benefits.
e. on new interstate highways.
e
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Scarcity and choice are the basic problems of economics; the supply and demand mechanism is the basic investigative tool of economics.
Answer the following statement true (T) or false (F)
If a Japanese importer could buy $1,000 U.S. for 122,000 yen, the rate of exchange for one dollar would be ________.
A. 1,220 yen B. 122 yen C. 820 yen D. 8.19 yen
The decline in the value of the dollar from 1985 to 1988 was beneficial to
a. American tourists travelling to Europe. b. firms importing goods into America. c. American exporting businesses. d. foreigners holding U.S. government bonds.
A year-long drought that destroys most wheat crops for the season would shift the:
A. short-run aggregate supply curve only. B. aggregate demand curve only. C. aggregate demand curve, and the short-run aggregate supply curve would shift in response. D. short-run aggregate supply curve and the long-run aggregate supply curve.