In the long run, a higher government budget deficit causes
A. a decrease in private spending while equilibrium real GDP remains unchanged.
B. no change in private spending but a decrease in equilibrium real GDP.
C. an increase in both private spending and equilibrium real GDP.
D. a decrease in both private spending and equilibrium real GDP.
Answer: A
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The price of stadium seats at a baseball game increases from $20 to $30 and ticket sales fall from 45,000 per game to 35,000 per game. If other things remained constant, then it appears that the price elasticity of demand is: a. elastic
b. inelastic. c. unit elastic. d. unit inelastic. e. equal to zero.
Figure 4-7
Refer to . The supply curve S1 and the demand curve D indicate initial conditions in the market for gasoline. A $.60-per-gallon excise tax on gasoline is levied. How much revenue does the $.60-per-gallon tax generate for the government?
a.
$40 billion
b.
$48 billion
c.
$50 billion
d.
$60 billion
A positive statement i. makes a statement about how the world operates. ii. is a true statement. iii. can be tested against the facts
A) i and ii
B) i and iii
C) ii and iii
D) i, ii and iii
E) i only
A single-price monopoly is characterized by a marginal revenue curve that is
A) upward sloping. B) downward sloping. C) horizontal. D) vertical.