The use of government expenditures and taxes to influence the level of economic activity is called
A) deficit management policy.
B) debt management policy.
C) financial policy.
D) fiscal policy.
Answer: D) fiscal policy.
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Figure 3-4
Which of the following would make point Q in Figure 3-4 attainable?
A. Full-employment policies B. A technological advance strictly applicable to the production of apples C. An increase in land available for agricultural use D. A transfer of available resources from apples to wheat production
In the economic way of thinking, which statement makes the most sense?
A) Costs determine prices. B) Prices determine costs. C) Costs determine demand. D) Demand determines supply.
In order to minimize the net cost of pollution reduction, the level of pollution reduction (the amount of a pollutant not released into the environment) should be the level at which
A. the total cost of reducing pollution is minimized and the total benefits of reducing pollution are maximized. B. the marginal benefit of reducing pollution equals the marginal cost of reducing pollution. C. the total benefit of reducing pollution equals the total cost of reducing pollution. D. the marginal benefit of reducing pollution exceeds the marginal cost of reducing pollution by the greatest possible amount.
In perfectly competitive markets, products are ______ and sellers are ______.
a. homogeneous; price takers b. homogeneous; price searchers c. substantially different; price takers d. substantially different; price searchers