An increase in supply, other things being equal, will cause which of the following to occur?
A) quantity supplied to decrease.
B) quantity demanded to increase.
C) a rightward shift in the demand curve as the price falls.
D) a leftward shift in the demand curves as the price increases.
Answer: B
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An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease
What is a welfare state?
What will be an ideal response?
Suppose a plaintiff hires a lawyer to represent her in a court case. To which of the following contracts would a highly risk-averse plaintiff agree?
A) The lawyer is paid by the hour. B) The lawyer receives a share of the settlement. C) The lawyer receives a fixed fee. D) The lawyer pays the client a fee for the right to the entire settlement.
Why does the U.S. government most likely distribute military spending to bases across the country?
a. To encourage support of defense spending b. To limit the power of defense contractors c. To meet the demands of special interest groups d. To ensure that defense budgets are adequate