As more and more resources are dedicated to an activity
a. the benefits will increase proportionately.
b. the benefits will become smaller and smaller while the costs will rise.
c. the demand for that activity will increase.
d. the costs will be offset by the benefits received from the activity.
B
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If the economy is operating on the long-run aggregate supply curve, then expansionary fiscal policy will
A) generate higher prices in the short run, but will induce aggregate supply to increase in the long run. B) generate an increase in real GDP and higher prices in the short run, but then real GDP will decrease to its long-run level, and the price level will increase some more. C) generate an increase in real GDP without higher prices in the short run, but then real GDP will return to its long-run level, and the price level will increase. D) generate an increase in real GDP and higher prices in both the short run and the long run.
According to your text, when a surplus exists,
A) buyers compete with buyers. B) buyers compete with sellers. C) sellers compete with sellers. D) nobody has to compete because scarcity has been eliminated.
The WTO's intervention against clean air standards
A) has earned it universal approval. B) was done in order to limit national sovereignty. C) has resulted in much criticism. D) has resulted in much criticism among professional economists. E) was championed in developing countries.
Recent income distribution figures in the United States show
A) slightly more inequality. B) less inequality. C) greater equity. D) less equity.