In 2009 Congress passed legislation providing states with funds to build roads and bridges. It also instituted tax cuts. Which of these shifts aggregate demand right?
a. only the increased funding for states
b. only the tax cuts
c. both the increased funding for states and the tax cuts
d. neither the increased funding for states nor the tax cuts
c
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Explain how a single-price monopoly determines its output and price. Compare this process to how a perfectly competitive firm determines its output and price
What will be an ideal response?
In the above, a positive relationship between price and quantity is shown in
A) Figure A. B) Figure B. C) both Figure A and Figure B. D) neither Figure A nor Figure B.
Table 1.2 shows the hypothetical trade-off between different combinations of Stealth bombers and B-1 bombers that might be produced in a year with the limited U.S. capacity, ceteris paribus.Table 1.2Production Possibilities for BombersCombinationNumber of B-1 BombersOpportunity cost(Foregone Stealth)Number of Stealth BombersOpportunity cost (Foregone B-1)A20NA195 B35 180 C45 150 D50 100NAOn the basis of Table 1.2, what is gained by producing at point B rather than point A?
A. 195 Stealth bombers. B. 35 B-1 bombers. C. 15 B-1 bombers. D. 15 Stealth bombers.
An assumption underlying indifference curve analysis is that MUx/MUy ________ as less of X and more of Y is consumed.
A. remains constant B. decreases C. always equals one D. increases