A basic purpose of macroeconomics is to explain:
A. Why businesses pollute.
B. How businesses choose the profit-maximizing rate of output.
C. Why the economy expands or contracts.
D. How and why countries trade with each other.
C. Why the economy expands or contracts.
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Refer to Scenario 5.3. Based on the 10 years' past performance, what is the probability of a good year for Zowiebo?
A) 30/31 B) 1/31 C) 0.9 D) 0.1
Your upstairs neighbor is the first-chair violinist in the local symphony orchestra. Because you are very fond of violin music, you sit on your balcony each night to listen to her rehearse. In this case, your violin-playing neighbor is an example of a
A. public good. B. good that imposes an external cost. C. Pareto good. D. good that provides an external benefit.
When tax revenues minus outlays is i. positive, the government has a budget surplus. ii. negative, the government has a budget deficit. iii. zero, the government has a balanced budget
A) i, ii, and iii B) i and ii only C) ii and iii only D) i only E) iii only
Cost-reduction generate
a. Increases in long-run profitability b. Increases in long-run profitability only if the cost reduction is difficult to imitate c. Increases in product differentiation d. Reduction in competitive intensity