In the long run, a higher government deficit does not affect equilibrium real Gross Domestic Product (GDP), so that continuous increases in the government deficit will
A) lead to greater tax revenues.
B) reduce spending on privately provided goods and services.
C) reduce the price level.
D) increase the unemployment rate.
B
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Which of the following is an example of peak-load pricing?
A) Charging less for vacations to Hawaii during December and January B) Charging more for electricity on hot days C) Setting price equal to marginal cost when there is a capacity constraint D) Selling excess capacity at lower prices
If the market interest rate decreases, then there will be _____
a. an upward movement along the investment demand curve b. a downward movement along the investment demand curve c. a rightward shift of the investment demand curve d. a leftward shift of the investment demand curve e. no movement along or shift of the investment demand curve
Which of the following observations is true? a. Monopolistically competitive sellers are price takers
b. Monopolistically competitive sellers treat price in the same manner as in perfect competition. c. Monopolistically competitive sellers regard price as a given by market conditions. d. Monopolistically competitive sellers are price makers.
Which of the following statements best describes economic efficiency?
a. Economic efficiency occurs when all choices on the production possibilities frontier show productive efficiency because an increase the quantity of one good will also increase the quantity of another. b. Economic efficiency occurs when no choices on the production possibilities frontier show productive efficiency because an increase the quantity of one good will also increase the quantity of another. c. Economic efficiency occurs when all choices on the production possibilities frontier show productive efficiency because an increase the quantity of one good will decrease the quantity of another. d. Economic efficiency occurs when no choices on the production possibilities frontier show productive efficiency because an increase the quantity of one good will decrease the quantity of another.