Government prohibition of advertising cigarettes on television would most likely result in
A) a rightward shift in the demand curve for cigarettes.
B) a leftward shift in the demand curve for cigarettes.
C) a rightward shift in the demand curve for television advertising time.
D) no change in the market for either cigarette or television advertising.
B
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Procyclical variables ________ during expansions and ________ during recessions
A) fall; fall B) rise; fall C) fall; rise D) rise; rise
When economists say entrepreneurs have a comparative advantage in arbitrage activity, they are saying
A) entrepreneurs are efficient at selling their products below cost. B) entrepreneurs are efficient at selling their products at cost. C) entrepreneurs are efficient at discovering opportunities to buy goods low and sell them at higher prices. D) entrepreneurs are efficient at resolving disputes of interest over titles to scarce property rights.
The argument that an increase in aggregate demand, as a result of an increase in government purchases, will be offset by increases in savings (less current consumer spending) for future taxes is called:
a. the crowding out effect b. the Ricardian equivalence theorem c. the budget deficit effect d. the budget surplus effect
Specialization and exchange
a. generally leads to increased production of some goods at the cost of decreased production of other goods b. causes the production possibilities frontier to shift inward c. increases total production of every good only if the total amount of resources also increases d. alters the allocation of production among individuals or nations, but does not alter total production levels e. allows greater total production of every good without an increase in the total amount of resources