The crowding-out effect refers to the tendency of expansionary fiscal policy to
A. cause firms to produce above their full capacity.
B. cause decreases in planned expenditures in the private sector.
C. replace low-skilled labor with higher-skilled labor.
D. cause households to save less.
Answer: B
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Limited government licenses that create a monopoly do so because
A) the license generates a marginal cost advantage. B) the monopoly will become a natural monopoly. C) a barrier to enter the market exists. D) All of the above.
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Use the following table for a certain product's market in Marketopia to answer the next question.Quantity Demanded DomesticallyPriceQuantity Supplied Domestically1,400$102,2001,60092,0001,80081,8002,00071,6002,20061,4002,40051,200If Marketopia is entirely closed to international trade, the equilibrium price and quantity would be
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