The assumption of a fixed number of firms is appropriate for analysis of
a. the short run but not the long run.
b. the long run but not the short run.
c. both the short run and the long run.
d. neither the short run nor the long run.
a
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Our free-rider model of voluntary giving suggests that, when the government subsidizes private giving to charity, it's contribution will simply "crowd out" the private contributions so long as no one is at a corner solution.
Answer the following statement true (T) or false (F)
The Federal Reserve System is owned by:
a. federal government agencies such as the Treasury. b. the Congress of the United States. c. the banks that are members of the Federal Reserve System. d. anyone who buys stock over the counter. e. people who have deposits in member banks.
Suppose good X has a positive income elasticity of demand. This implies that good X could be (i) a normal good. (ii) a necessity. (iii) an inferior good. (iv) a luxury
a. (i) only b. (i) and (ii) only c. (i), (ii), and (iv) only d. (iii) only
If the federal government runs a budget deficit, but the budget deficit as a percent of GDP is less than the growth rate of real output, the:
A. national debt will decrease as a share of GDP. B. national debt will remain a constant share of GDP. C. national debt will increase as a share of GDP. D. size of the national debt (in dollar value) will decline.