Raising taxes as an element of discretionary fiscal policy is intended to reduce aggregate demand, but it can also reduce aggregate supply if
a. the higher taxes lead workers to seek out a second job.
b. the higher taxes cause workers to work less.
c. the government purchases goods with the additional revenue.
d. the government uses the additional revenue to retire some of the federal debt.
e. the higher taxes cause people to save less.
B
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Which of the following describes a situation in which every good or service is produced up to the point where the last unit provides a marginal benefit to consumers equal to the marginal cost of producing it?
A) profit maximization B) productive efficiency C) allocative efficiency D) marginal efficiency
If the entry of new firms in a perfectly competitive industry substantially increases the market demand for resources,
a. this reduces the market price of resources. b. this raises the market price of resources. c. the market price of resources does not change. d. this lowers the ATC curves of individual firms.
When did NAFTA go into effect?
What will be an ideal response?
A person committing to carpool with a friend to the gym for daily workouts is an example of:
A. positive framing. B. a commitment device. C. status quo bias. D. the endowment effect.