A decrease in net taxes during a recession increases aggregate demand and helps the economy return to its potential output level
a. True
b. False
Indicate whether the statement is true or false
True
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Marginal cost is the ____________ cost of producing one additional unit and marginal revenue is the_____________ revenue of selling an additional unit
a. Incremental, Incremental b. Total, Incremental c. Incremental, Total d. Total, Total
The resource cost of inflation refers to
a. the opportunity cost of the resources spent coping with inflation b. the redistribution of resources due to inflation c. the lost purchasing power due to inflation d. the lost real income due to inflation e. the resources lost due to asking for higher nominal wage increase
The practice of featherbedding is intended to help unions:
A. reduce the tradeoff between higher wages and fewer jobs. B. negotiate for higher wages by assuring more efficient labor practices. C. increase membership by guaranteeing job growth. D. defeat "right-to-work" laws.
Refer to the information provided in Figure 16.4 below to answer the question(s) that follow.Los Angeles International Airport (LAX) is located next to Playa Del Rey. The noise from air traffic negatively affects individuals living in Playa Del Rey, however, this cost is not considered by airlines or air travelers. The airlines feel they have a right to use the airspace while the individuals living in Playa Del Rey feel they have the right to quiet. The following diagram depicts the marginal costs and marginal benefits associated with air travel.
Figure 16.4Refer to Figure 16.4. Suppose the government assigns property rights to the airlines, then the
airlines and the residents engage in negotiations. The ________ of air travel is 100 units. A. resulting efficient level B. minimum allowable level C. government-regulated level D. maximum allowable level