At the end of World War II many European countries were rebuilding and so were eager to buy capital goods and had rising incomes. We would expect that the rebuilding increased aggregate demand in
a. both the United States and Europe.
b. the United States but not Europe.
c. Europe, but not the United States.
d. neither the United States, nor Europe.
a
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Income assistance programs
a. require that the recipient work and contribute to the program b. are designed to replace lost income c. include unemployment compensation and Medicare d. are funded exclusively by the federal government e. include both cash and in-kind transfer programs
The price elasticity of demand depends on how readily and easily consumers can switch their purchases from one product to another
a. True b. False Indicate whether the statement is true or false
Suppose external benefits are present in a market which results in the actual market price of $14 and market output of 150 units. How does this outcome compare to the efficient, ideal equilibrium?
a. The efficient outcome would be greater than 150 units. b. The efficient outcome would be less than 150 units. c. The efficient outcome would also be 150 units. d. The efficient price would be less than $14.
When production creates external costs greater than external benefits, a market is:
A. producing a socially optimal quantity of the product. B. allocating too few resources to production of the product. C. allocating too many resources to production of the product. D. not producing the product without government intervention.