What is the big-push strategy and what are the problems associated with financing a big-push?
It is the development strategy that relies on an integrated network of investments that are introduced into
the economy all at once. A big-push strategy requires enormous national commitments that can sometimes
tax an economy beyond its capabilities. Levying taxes on an impoverished people can be destabilizing.
External borrowing may be less painful in the short run, but perhaps more costly in the long run.
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An advance in technology will
A) not shift the production function but will lead to a movement down along the production function. B) shift the production function downward. C) not shift the production function but will lead to a movement up along the production function. D) shift the production function upward.
Which statement is true?
A. The psychological theory of business cycles is an exogenous theory. B. All business cycle theories are exogenous. C. The war theory is an endogenous business cycle theory. D. The monetary theory is an endogenous business cycle theory.
Deadweight losses represent the
a. inefficiency that taxes create. b. shift in benefit from producers to consumers. c. part of consumer and producer surplus that is now revenue to the government. d. increase in revenue to the government.
Use the following demand and supply functions: Demand:Qd = 900 - 60PSupply: Qs = -200 + 50PEquilibrium price and output are
A. P = $20 and Q = 150. B. P = $10 and Q = 300. C. P = $100 and Q = 5,300. D. P = $7 and Q = 480.