Cost-benefit principles can be applied to the decision of:
a. profit-maximizing firms.
b. majority-rule voting.
c. which project receives the most votes.
d. rational ignorance.
e. all of these.
e
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Research confirms that government provision of infrastructure:
A. promotes economic growth. B. increases human capital. C. leads to reduced spending on research and development. D. hinders economic growth.
Modeling trade in imperfectly competitive industries is problematic because
A) there is no single generally accepted model of behavior by imperfectly competitive firms. B) there are no models of imperfectly competitive behavior. C) it is difficult to find an imperfectly competitive firm in the real world. D) collusion among imperfectly competitive firms makes usable data rare. E) there is only a single model of imperfect competition (monopoly) but imperfect competition can take many forms in the real world.
Assume the long-term real interest rate is 4% and the expected inflation rate is 5%
If the Fed decreases the money supply and as a result, the expected inflation rate decreases to 2%, then based on the Fisher effect, the long-term real interest rate will ________ and the long-term nominal interest rate will ________. A) fall to 4%; rise to 7% B) remain at 4%; fall to 6% C) fall to 1%; fall to 6% D) fall to 6%; remain at -1%
When the federal government takes action to change taxes and spending to stimulate the economy, such policy is:
A. automatic. B. passive. C. discretionary. D. nondiscretionary.