An increase in the budget deficit
a. raises net exports and domestic investment.
b. raises net exports and reduces domestic investment.
c. reduces net exports and raises domestic investment.
d. reduces net exports and domestic investment.
d
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In the real world
A) many firms charge different prices based on consumers' willingness to pay. B) all sellers charge one price set by the government. C) profitable sellers will set one price based on the average elasticity of demand of buyers. D) all sellers charge one price equal to the marginal cost of production.
The use of a price system eliminates: a. scarcity
b. equilibrium. c. shortages and surpluses. d. changes in supply and demand.
Because the prices of final goods and services tend to increase more quickly than the prices of inputs, the short run aggregate supply curve is:
A. upward sloping. B. downward sloping. C. perfectly elastic. D. perfectly inelastic.
Politicians will often be able to gain from support of trade restrictions because
A) foreigners benefiting from the restrictions will be a major source of political contributions. B) organized interest groups benefiting from the restrictions will make large contributions to political campaigns while most others will not feel strongly about the restrictions. C) the restrictions will lead to lower prices and substantial benefits for consumer groups. D) the restrictions will generate substantial benefits for consumer groups at the expense of well-organized labor and industrial interests.