Used alone, an expenditure-reducing policy that lowers aggregate demand
A) will not reduce the current account deficit.
B) is likely to cause a recession.
C) will be likely to increase the current account deficit.
D) is likely to increase domestic inflation.
B
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Government certification of the weights and measures used in business can be justified because
A) no business operated for profit would have any interest in weighing and measuring accurately. B) people cannot be trusted. C) government officials, unlike private parties selling for profit, have no incentive to cheat. D) it reduces total transaction costs below what they would be if all individual buyers or sellers had to check for themselves.
Refer to Figure 4-1. If the market price is $3.50, what is Kendra's consumer surplus?
A) $9.00 B) $7.50 C) $3.50 D) $0
The majority of government programs designed to help poor families consists of direct cash payments.
A. True B. False C. Uncertain
Refer to the table below. If Sweet Grams is a perfectly competitive firm and the market price $1.00 per unit, what is the profit-maximizing total quantity for Sweet Grams to produce?
Sweet Grams makes graham cracker snack packages. Sweet Grams is a multi-plant firm with two production facilities. The above table summarizes the total marginal cost of production at various output levels in the separate plants. Assume Sweet Grams is a perfectly competitive firm.
A) 47,000
B) 22,500
C) 24,500
D) 52,000