The short-run aggregate supply curve is most likely to shift down (to the right) when actual output is:
A. not equal to potential output, regardless of whether it is above or below.
B. less than potential output.
C. equal to potential output.
D. greater than potential output.
Answer: B
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Which of the following is a capital resource?
A. a computer programmer B. silicon (sand) used to make computer chips C. a corporate bond issued by a computer manufacturer D. a piece of software used by a firm
Which condition would generate a violation of the Ricardian Equivalence?
A) downward sloping labor supply curve B) underdeveloped credit markets C) inflationary monetary policy D) deflationary monetary policy
According to the public-choice view,
a. laissez-fare is always the best economic policy. b. macroeconomic policymakers are only interested in the social good. c. policymakers often act in irrational ways or out of ignorance. d. politics often trump economic theory in policymaking. e. both c and d.
Why is it that only a small percentage of American firms are incorporated?
A. Corporate debt as stockholder’s liability B. Small size of firms C. Unlimited liability D. Inability to outlast associated individuals