According to the traditional (crowding-out) view, large budget deficits during normal times will lead to
a. bank failures in the future.
b. a smaller capital stock in the future.
c. lower interest rates in the future.
d. a bankrupt government in the future.
B
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Consumers' total benefit from consuming a good is equal to the
A) total amount spent on the good. B) consumer surplus on the quantity purchased. C) consumer surplus plus the total amount spent on the good. D) consumer surplus minus the total amount spent on the good. E) total amount spent on the good divided by the number of units purchased.
A reduction in production costs will result in a(n):
a. rightward shift of the supply curve. b. increase in supply. c. greater willingness and ability of producers to supply a larger quantity at any given price. d. greater willingness and ability of producers to supply the same quantity at a lower price. e. all of these.
The basic incentive problem is that owners and employees:
A. generally operate in perfectly competitive markets. B. are both concerned about sales maximization. C. have fundamentally different objectives. D. need government assistance to solve differences.
?Hair Pins /hourBandanas /hourNigel410Mia93
Consider two individuals, Nigel and Mia, who produce hair pins and bandanas. Nigel's and Mia's hourly productivity are shown in Table 3.3. Mia's opportunity cost of producing one bandana is:
A. 1/3 of a hair pin. B. 2.5 hair pins. C. 3 hair pins. D. 9 hair pins.