In a closed economy, if Y and T remained the same, but G rose and C fell but by less than the rise in G, what would happen to private and national saving?
a. private and national saving would rise
b. private and national saving would fall
c. private saving would rise and national saving would fall
d. private saving would fall and national saving would rise
c
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Joe likes to sleep late in the mornings and play tennis in the afternoons. The opportunity cost of Joe attending his morning class for one hour is
A) an hour of tennis given u
Externalities can lead to inefficient economic outcomes because:
A) firms do not have to pay the full cost associated with using inputs that cause pollution. B) firms that produce public goods tend to be monopolies. C) Both A and B are correct. D) none of the above
According to official statistics in the United States, a person is classified as poor
A. if the person's money income is below the poverty income threshold. B. only if the person's money income is below the poverty income threshold AND the person is not working. C. only if the person's money income is below the poverty income threshold AND the person is homeless. D. if the person's money income and the value of non-cash transfers is below the poverty income threshold.
Choose the letter of the diagram in Figure 16.1 that Keynesians would use to illustrate the effects of stimulative fiscal policy on the economy.
A. a. B. b. C. c. D. d.