Starting from long-run equilibrium, a war that raises government purchases results in ________ output in the short run and ________ output in the long run.
A. lower; potential
B. higher; potential
C. higher; higher
D. lower; higher
Answer: B
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The table below shows the utility schedule for a consumer of candy bars. Candy Bars ConsumedTotal Utility001529312414515615713The consumption of which candy bar yields the greatest marginal utility?
A. seventh B. sixth C. fifth D. first
Refer to Figure 5-7. The marginal benefit of reducing pollution curve is the same curve as
A) the supply of pollution reduction curve. B) the demand for pollution reduction curve. C) the external benefit curve. D) the positive externality curve.
Total government revenues in the United States are about _____ percent of GDP
a. 25 b. 17 c. 45 d. 30
Under Scenario 18.1, suppose the body of water lies on an international boundary, and the fishermen speak a different language than the factory managers. The efficient outcome cannot be achieved if the cost of hiring translators for both parties:
A) is less than $4,000. B) equals $5,000. C) is greater than $6,000. D) none of the above