The enormous budget deficits of 2009 through 2011 meant that the federal government was borrowing upwards of $1.5 trillion per year. If that borrowing had limited the ability of the private sector to get financial capital for its purposes, economists would call this
A. crowding out.
B. forcing in.
C. crowding in.
D. forcing aside.
Answer: A
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All else equal, forecasting your firm's demand is likely to be less profitable if any of the following are true except for which one?
A) It is difficult to obtain an accurate forecast of your firm's demand. B) Your firm experiences small fluctuations in demand. C) A change in your output level leads to a large change in the firm's marginal cost. D) A change in your output level leads to a small change in the firm's marginal cost.
Which of the following is not correct?
a. When a union is present in a labor market, wages are determined by the equilibrium of supply and demand. b. Like any cartel, a union is a group of sellers acting together in the hope of exerting their joint market power. c. The process by which unions and firms agree on the terms of employment is called collective bargaining. d. Most workers in the U.S. economy are not members of a union.
Ceteris paribus, which of the following is most likely to cause an increase in the quantity supplied of perfume?
A. An improvement in perfume-making technology. B. An increase in the price of perfume. C. An increase in the number of sellers of perfume. D. An increase in the salaries paid to perfume makers.
?Strawberries (pounds) 
Consider the above table. Assuming the government imposes a price ceiling on strawberries of $4 per pound, what would be the likely result?
A. a surplus of 2,000 pounds of strawberries B. No change, equilibrium would prevail. C. a shortage of 2,000 pounds of strawberries D. The quantity demanded of strawberries would fall to zero.