The prospect of future deficits
A) would prompt government to vastly expand discretionary spending.
B) limits the ability of government to conduct fiscal policy in the near future.
C) requires a government to eliminate all entitlement spending.
D) encourages government to conduct expansionary fiscal policy.
B
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If the variable cost curve is a straight line, then the
A. marginal cost curve may be U-shaped. B. marginal cost curve is upward sloping. C. marginal cost curve will be U-shaped. D. marginal cost curve will be horizontal.
The service a homeowner performs when she mows her yard is not included in GDP because ________.
A. multiple counting would be involved B. this is a noninvestment transaction C. this is a nonproduction activity D. this is a nonmarket transaction
A downward-sloping demand curve is faced by firms:
a. under perfect competition. b. under perfect competition and monopoly. c. in all market structures except monopoly. d. in all market structures except monopolistic competition. e. in all market structures except perfect competition.
Many European countries, such as Italy and Spain, have:
A. less unemployment than the United States, but with a greater percentage of that unemployment in the form of long-term unemployment. B. more unemployment than the United States, but with a smaller percentage of that unemployment in the form of long-term unemployment. C. more unemployment than the U.S., with a greater percentage of that unemployment in the form of long-term unemployment. D. less unemployment than the United States, with a smaller percentage of that unemployment in the form of long-term unemployment.