The response of investment spending to an increase in the government budget deficit is called
A) private dissaving. B) expansionary investment.
C) income minus net taxes. D) crowding out.
Figure 21-5
D
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Suppose a senior college football player approaches an insurance company and seeks to purchase an insurance policy against him receiving a career-ending injury. The insurance company
A) will sell him an insurance policy because the proposal entails uncertainty not risk. B) will sell him an insurance policy because the proposal entails risk not uncertainty. C) will not sell him an insurance policy because the proposal entails uncertainty not risk. D) will not sell him an insurance policy because the proposal entails risk not uncertainty.
Suppose there are two countries (Home and Foreign) that produce two goods. Home's wages are 100% greater than Foreign's wages. Will trade be possible between Home and Foreign?
a. No, because Foreign's wages are lower than Home's wages. b. Yes, Foreign will be able to export both products to Home. c. Yes, as long as Home's marginal productivity of labor in one product is at least 100% higher than Foreign's marginal productivity of labor in the same product. d. No, because prices will be the same in each country.
Table 24.1Monopoly Costs and RevenueQuantityPriceTotal Cost1$500$4002$450$6503$400$9504$350$1,3005$300$1,700In Table 24.1, the maximum profit that can be achieved is
A. -$200. B. $100. C. $500. D. $250.
Discuss the short- and long-run output responses resulting from an increase in money growth when the economy is producing a current level of output that equals potential output, all other factors constant.
What will be an ideal response?