Using Figure 2 below, suppose that the economy started at PAE2. A potential change that could cause the economy to go from PAE2 to PAE3 might be:
A. consumption spending increases.
B. investment decreases.
C. imports increase.
D. exports decrease.
A. consumption spending increases.
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For a tax to be successful, the tax base must be ¬¬¬_____
a. easy to measure and monitor b. large c. inelastic d. able to expand in times of crisis
An essential point, among many, in the refutation of the "cheap foreign labor" argument is that
a. foreign workers have a lower standard of living. b. foreign workers are less productive. c. low foreign wages mean fewer exports for the United States. d. the United States does not benefit from cheap foreign labor so the goods should be kept out.
Each of the following took place in the latter half of the 1990s except
A. a declining federal budget deficit. B. a declining unemployment rate. C. the spread of computerization. D. a rising rate of inflation.
In the long-run equilibrium for a perfectly competitive market
A) the firms' economic profits are zero. B) there is no incentive for entry or exit. C) average total costs of production are minimized. D) All of the above are correct.