Which of the following is likeliest to have increased at point B?
a. real wealth
b. household debt
c. consumer spending
d. consumer confidence
b. household debt
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Cartels rarely succeed for long because they find it difficult to
A) avoid losing the advantages from economics of scale. B) keep marginal costs high and marginal revenue low. C) keep members from offering discounts and new firms from entering. D) keep members from reducing output below the optimal level. E) prevent average cost from falling below marginal cost.
Paper money in the United States is in the form of
a. treasury notes b. Federal Reserve notes c. silver certificates backed by silver d. gold certificates backed by gold e. U.S. bank notes
Discretionary fiscal policy involves
a. expansion of government revenues during a period of rapid growth. b. contraction of government revenues during a recession. c. automatic adjustments that affect the size of the budget deficit or surplus. d. an intentional change in taxation or government spending. e. both a and b.
A political candidate promises voters more funding for AIDS research and child care and assures them they will not have to sacrifice any other goods or services to obtain the additional programs.
A. This may be possible if the economy has unemployed resources. B. This is possible only in a fully employed economy. C. This is possible if the economy is producing on its production possibilities curve. D. None of the choices are possible.