Refer to the above diagram. A binding government-set price floor is best illustrated by:
A. price C.
B. price A.
C. quantity E.
D. price B.
Answer: A
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Which of the following fiscal policy actions would be appropriate if the economy is experiencing an recessionary? gap?
A. a decrease in taxes B. an increase in interest rates C. a decrease in government spending D. a decrease in the money supply
When I buy an $12.00 movie ticket rather than two paperback books, the opportunity cost of going to the movie is the two paperback books I did not buy
Indicate whether the statement is true or false
Since 1945, national defense expenditures as a percentage of GDP have _____
a. fallen from 41 percent to 3.7 percent b. fallen from 32.1 percent to 20.1 percent c. fallen from 62.3 percent to 11.5 percent d. fallen from 50.5 percent to 9.6 percent
Economists generally prefer direct regulation to incentive-based programs because explicit regulation tends to be more efficient.
Answer the following statement true (T) or false (F)