Market failures occur when
A. there is an increase in demand.
B. there is a change in quantity demanded.
C. economic efficiency increases.
D. externalities exist.
Answer: D
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If import restrictions prohibit foreigners from selling various goods in the U.S. market,
a. the United States will be able to export more goods abroad. b. foreigners will have fewer U.S. dollars with which to buy goods from Americans. c. the United States will be able to produce a larger output than would otherwise be the case. d. the domestic producers in the protected industries will supply goods to U.S. consumers at lower prices than would otherwise be the case.
Increases in government expenditures and large budget deficits are projected for 2014-2020 . If the economic recovery is weak and growth is sluggish during this decade, this will be
a. supportive of the Keynesian view, but inconsistent with the crowding-out, new classical, and supply-side theories. b. inconsistent with the Keynesian view, but supportive of the crowding-out, new classical, and supply-side theories. c. inconsistent with both Keynesian and non-Keynesian theories. d. supportive of both Keynesian and non-Keynesian theories.
What causes the aggregate supply curve to have an upward slope in the short run, but a vertical slope in the long run?
What will be an ideal response?
The effect of a change in net taxes on the quantity of real GDP demanded equals the resulting shift in the consumption function times _____
Fill in the blank(s) with the appropriate word(s).