Which of the following is one of the three main reasons for the spread of democracy?
a. Democratic regimes failed to deliver economic progress to the vast bulk of their populations.
b. Economic advances in the past quarter-century have led to the emergence of a class of ruling elite
c. New information and communication technologies have broken down the ability of the state to control access to uncensored information.
d. Totalitarian regimes delivered economic progress to the bulk of their populations but not enough to the power brokers.
Answer: d. Totalitarian regimes delivered economic progress to the bulk of their populations but not enough to the power brokers.
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The tax multiplier is negative because increases in taxes lead to decreases in consumer spending
Indicate whether the statement is true or false
When the price of a good is legally set below the equilibrium level, a shortage often results. This shortage
a. is a temporary failure of the market mechanism. b. is the result of a shift in demand. c. is the result of a shift in supply. d. occurs because the price ceiling prevents the market mechanism from establishing an equilibrium price.
Suppose the nation of Alphonia was charged with dumping electric lawnmowers in the nation of Omegalon. The result of Omegalon imposing anti-dumping tariffs on electric lawnmowers manufactured in Alphonia would most likely be:
A. an increased market share for Alphonian-manufactured electric lawnmowers in Omegalon. B. higher selling prices on electric lawnmowers in Omegalon. C. lower selling prices on electric lawnmowers in Alphonia. D. increased exports of electric lawnmowers from Alphonia.
If the price of apples goes down, then the demand for pears will
A) increase, assuming apples and pears are substitutes. B) decrease, assuming apples and pears are substitutes. C) decrease, assuming apples and pears are complements. D) remain constant, assuming apples and pears are related goods.