The fallacy in the strict crowding-out argument comes from supposing that
A. the Federal Reserve always accommodates the U.S. Treasury in its financing of the deficit.
B. corporations always outbid small businesses for government contracts.
C. the economy’s flow of saving is fixed.
D. investors will spend more when G increases.
Answer: C
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If the marginal cost for Dinky's Donuts to advertise one additional day each week in the local newspaper is $200, then Dinky's Donuts should advertize that additional day
A) until the marginal benefit the company receives reaches zero. B) as long as the marginal benefit the company receives each week is just equal to or greater than $200. C) as long as the weekly marginal cost does not rise. D) only if the marginal benefit the company receives each week is greater than $200 plus an acceptable profit margin.
An appreciation in the value of the U.S. dollar would
a. encourage foreigners to make more investments in the United States. b. encourage U.S. consumers to purchase more foreign-produced goods. c. increase the number of dollars that could be purchased with the euro. d. discourage U.S. consumers from traveling abroad.
Union membership as a share of the work force is ____ in states with right-to-work laws. (Fill in the blank.)
a. above the national average. b. below the national average. c. greater than 50 percent. d. close to 100 percent.
Sole proprietorships:
a) Are each owned by many individual stockholders. b) Are the least common type of business firm. c) Are owned by one individual. d) Account for most business sales and assets.