Tax cuts aimed at businesses can stimulate:
A. social spending.
B. private consumption.
C. investment spending.
D. net exports.
Answer: C
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Based on Table 9.3, the capital account balance is equal to
A) +25. B) -25. C) -125. D) +125. E) -225.
Total spending by domestic residents, businesses, and governments is called
A) investment. B) net domestic purchases. C) absorption. D) GDP.
If a monopoly's demand curve shifts to the right, the
A) monopoly will charge a higher price. B) monopoly will charge a lower price. C) monopoly will sell more. D) monopoly's decision cannot be determined.
In a perfectly competitive market, if supply and demand fully reflect all of the costs and benefits associated with production and consumption, then total economic surplus is maximized when:
A. the market is in equilibrium. B. consumer surplus is greater than producer surplus. C. consumer surplus and producer surplus are equal. D. price controls keep prices low enough that most consumers can purchase the item.