The argument that society should be in favor of changes that benefit some people without making others worse off is known as
A) a positive externality.
B) the Coase Theorem.
C) the cost-benefit principle.
D) the Pareto principle.
D
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If a country was operating well below its long-run capacity (potential GDP), the initial impact of an unanticipated increase in the money supply would most likely result in an increase in
a. prices with little change in output. b. output with little change in prices. c. output and a decline in prices. d. prices and a decline in output.
Use the following table, which shows a firm's production, output price, and various quantities of labor (workers) employed, to answer the next question.WorkersTotal Output per DayPrice of Good210$103151041910522106241072510How many workers will the profit-maximizing firm hire if the wage rate is $20 per day?
A. 3 B. 4 C. 5 D. 6
According to this Application, the Fed increased its lending by hundreds of billions of dollars to financial institutions as a response to the ongoing financial crisis
This increase in loans to financial institutions increased the supply of money in the economy. When the supply of money increases, the money supply curve will A) shift to the right, increasing the interest rate. B) shift to the left, increasing the interest rate. C) shift to the right, decreasing the interest rate. D) shift to the left, decreasing the interest rate.
If the economy is on the IS curve, but is to the left of the LM curve, aggregate output will ________ and the interest rate will ________
A) rise; rise B) rise; fall C) fall; rise D) fall; fall