Business cycles are the result of
A) regular shifts of the AD curve only.
B) irregular shifts of the SAS curve only.
C) regular shifts of both the AD and SAS curves.
D) irregular shifts of both the AD and SAS curves.
D
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A consequence of a negative externality is that social costs __________ private costs, and the efficient level of output __________.
A. equal; does not require any type of government intervention B. are less than; requires the government to create a subsidy C. are greater than; requires the government to impose a tax D. are greater than; requires the government to create a subsidy E. are less than; requires the government to impose a tax
Which of the following statements regarding futures is true?
A) trading futures contracts on agricultural and mineral commodities makes up a majority of all trading. B) trading in financial futures involves more transactions than trading in commodity futures. C) futures trading is allowed only for financial assets. D) futures trading is allowed only for commodities.
The budget of an economy is said to be in deficit when: a. federal outlays exceed revenues
b. federal revenues exceed outlays. c. anticipated inflation rate exceeds its actual rate. d. there is a loss of value of a country's currency with respect to one or more foreign reference currencies. e. anticipated interest rate exceeds its actual rate.
In a perfectly contestable market in the long run, each firm
a. produces at the minimum point on its long-run average total cost curve. b. earns a profit below its opportunity cost of capital. c. avoids making capital expenditures. d. All of the above are correct.