Which of these activities will most likely result in an external benefit?
a. A college student buys a deck of cards to play solitaire in her dorm room.
b. An elderly woman plants a flower garden on the vacant lot next to her house.
c. An executive purchases a book to read on a business trip.
d. A ten-year-old uses his allowance to buy new Nike shoes.
b
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If a monopolist wants to increase the amount it sells, it
A) will keep the price the same. B) must lower the price on all units. C) must accept lower profits. D) must lower the cost of production.
Firm X owns both tea and coffee plantations. It sells directly to the public. If the firm wants to increase the sales for the coffee, assuming that tea and coffee are substitutes, which of these strategies can it employ?
a. Increase the price for the tea b. Offer free expedited shipping on the coffee c. Advertise the tea more heavily d. Both A&B
Private-sector firms’ beliefs about the economic climate can cause unemployment to linger even after a recession is over
Select whether the statement is true or false. A. True B. False
Which of the following actions results in the shortest lag between recognition of a problem and an appropriate stabilization response?
A. Congress writes legislation providing more automatic stabilizers in the economy. B. Congress provides limited authority to the president to alter fiscal or monetary policy for the purpose of stabilization. C. The appropriation and authorization responsibilities of Congress are transferred to the executive branch in order to eliminate congressional lags. D. Congress takes authority over stabilization and is not required to wait for the executive branch to respond.