An increase in government expenditure shifts the AD curve __________ and an increase in taxes shifts the AD curve __________
a) rightward; rightward
b) rightward; leftward
c) leftward; rightward
d) leftward; rightward
b) rightward; leftward
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? If a consumer is currently at Point E on Figure 5-13, she will
A. choose to move to the combination at C to make herself better off. B. choose to move to the combination at D to make herself better off. C. reduce expenditures to make herself better off. D. stay at Point E, since that combination is the cheapest alternative to be on indifference curve U1.
Refer to Table 9-10
a. Which person has an absolute advantage in the production of pens? pencils? b. Which person has a comparative advantage in the production of pens? c. Which person has a comparative advantage in the production of pencils?
Monopolistic competition is a market structure in which there
a. are no good substitutes produced within the industry, giving each firm substantial market share b. are perfect substitutes produced within the industries, giving each firm only partial market share c. are monopolies competing to create monopolistic competition in the short run and oligopoly in the long run d. are a large number of substitute goods produced in the industry e. are only a few firms in the industry
If in a closed economy Y = $11 trillion, which of the following combinations would be consistent with national saving of $3 trillion?
a. C = $8 trillion, G = $3 trillion b. C = $13 trillion, G = -$1 trillion c. C = $9 trillion, G = $5 trillion d. C = $7 trillion, G = $1 trillion