Starting from long-run equilibrium, a large tax increase will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. recessionary; lower; potential
B. expansionary; lower; potential
C. expansionary; higher; potential
D. recessionary; lower; lower
Answer: A
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If freezing weather destroys half of the current Florida orange crop, wealth will increase for
A) almost all Florida orange growers. B) no Florida orange growers. C) some Florida orange growers and all California orange growers. D) some Florida orange growers and some California orange growers.
In recent years, "country risk analysis" has become an important part of international business. What do we mean by "country risk"? Briefly explain the factors that are involved in a country risk analysis
What will be an ideal response?
Public goods are usually provided by:
A. private industry. B. the government. C. private citizens. D. internal markets
An external cost on supply can be measured graphically as the
A. Horizontal distance between the market supply curve and the social supply curve. B. Horizontal distance between the market demand curve and the social demand curve. C. Vertical distance between the market demand curve and the social demand curve. D. Vertical distance between the market supply curve and the social supply curve.