Refer to Figure 13-1. Ceteris paribus, an increase in firms' expectations of the future profitability of investment spending would be represented by a movement from
A) AD1 to AD2. B) AD2 to AD1. C) point A to point B. D) point B to point A.
A
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Under laissez-faire, the allocation of scarce resources among the different industries
A. is possible only with government tax and subsidy policies. B. is accomplished by the price system. C. requires a considerable amount of central planning. D. is the result of consumer planning.
An upper limit to the quantity of a good that may be produced in a specific period is called
A) production quota B) import quota C) price ceiling D) price floor
Between 2002 and 2014 the number of workers employed in construction fell while the number of workers employed in food services rose
a. True b. False Indicate whether the statement is true or false
How does government's power to coerce behavior tend to reduce private-sector risk?
A. By enforcing contracts and discouraging illegal behavior that threatens private property. B. By guaranteeing that the government will financially cover any losses by private-sector firms. C. By strictly regulating the allocation of most property resources in the economy. D. The coercive power of government only increases private-sector risk.