Which of the following events strained belief in the economy's ability to self-correct by way of price adjustment, leading to the development of discretionary fiscal policy in the 1930s?
a. The American Civil War
b. World War I
c. The Gulf War
d. The Great Depression
d
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If stricter immigration laws are imposed and many foreign workers in the United States are forced to go back to their home countries,
A) we will move down along the long-run aggregate supply curve. B) we will move up along the long-run aggregate supply curve. C) the long-run aggregate supply curve will shift to the right. D) the long-run aggregate supply curve will shift to the left.
Refer to Figure 11-16. The figure above illustrates a series of isoquants. Which of the following statements is true?
A) Points z and y represent the same output; this output is produced with more capital at z than at y. B) Point z represents a greater output than point x or point y. C) Points x, z, and y all represent the same output. D) Point x and y represent the same output but the cost of production at y is greater than the cost of production at x.
If markets are perfectly competitive and production of a good results in water pollution, the imposition of a tax on the good will:
A. reduce the number of firms producing that good in the long run. B. reduce the number of firms producing that good in the short run. C. increase the number of firms producing that good in the long run. D. increase the number of firms producing that good in the short run.
According to the concept of present value, a $50 barrel of oil today is worth:
A. less than a $50 barrel in 2 years. B. more than a $50 barrel in 2 years. C. the same as a $50 barrel in 2 years. D. the same as a $50 barrel in 2 years, but only if there is no inflation during those 2 years.