Which of the following best describes most economists' approach to economic stabilization until the 1930s?
A. Use a sound finance approach during normal economic times, and a functional finance approach during a recession or a boom.
B. Run larger deficits during recessions and smaller deficits during economic booms, counting on economic growth to be high enough to keep the debt-to-GDP ratio low.
C. Maintain a balanced budget at all times, under the principle of sound finance.
D. Economists were wholly concerned with microeconomics and had ignored problems of government deficits, debt, recessions, and economic growth.
Answer: C
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Suppose it takes Dan 5 minutes to make a sandwich and 15 minutes to make a smoothie, and it takes Tracy 6 minutes to make a sandwich and 12 minutes to make a smoothie. What is the opportunity cost to Dan of making a sandwich?
A. 5 smoothies B. 15 smoothies C. 3 smoothies D. 1/3 of a smoothie
Why do public schools typically require proof that children have been immunized before enrolling?
A. It is an efficient way to publicize the need for immunizations. B. People don't realize that becoming vaccinated entails no risk. C. It is a costly to fake signal that a child is healthy. D. People do not adequately account for the external cost of not vaccinating their children.
Refer to the above table. Suppose the marginal revenue product of the 5th worker is $800. This implies that
A. the price of the good is $5.33. B. the price of the good is $8. C. the price of the good is $70. D. we cannot tell what the price of the good is without more information.
Refer to the information provided in Figure 6.5 below to answer the question(s) that follow.
Figure 6.5Refer to Figure 6.5. Molly's budget constraint is EF. If her income decreases and the price of CDs increases, her new budget constraint could be
A. CD. B. BD. C. AD. D. Both B and C are correct.