Critics of the government's fiscal policies argued that government deficits
A. caused the level of unemployment in the United States to increase during the 1980s.
B. were linked to the excess of imports over exports that occurred in the 1980s.
C. had directly contributed to a decline in the level of demand in the American economy.
D. prevented capital from flowing into the United States.
Answer: B
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Refer to Table 1-6. What is Ivan's marginal benefit if he decides to stay open for six hours instead of five hours?
A) $10 B) $20 C) $30 D) $91.67
If bargaining is costless, the assignment of property rights for an externality
a. has no impact on the possibility of an efficient outcome and no distributional impact. b. has no impact on the possibility of an efficient outcome but does have a distributional impact. c. does have an impact on the possibility of an efficient outcome but has no distributional impact. d. does have an impact on the possibility of an efficient outcome and does have a distributional impact.
Figure 13-3
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Oligopolist A cuts price in an attempt to enlarge his share of the market. His competitors retaliate with identical price cuts. In this case, in Figure 13-3, oligopolist A will move from point A to which point?
A. B B. C C. D D. E
Suppose the exchange rate is initially set at 100 yen per dollar and increases to 125 yen per dollar. This would be expected to cause the price of U.S. goods in the Japanese economy to
A. increase. B. change in a manner that cannot be determined without additional information. C. remain the same since domestic demand remains the same. D. decrease.