In the classical model there is complete crowding out when government spending increases, but in the short-run macro model there is only partial crowding out
a. True
b. False
A
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Refer to Resource Supply/Demand. The social gain from this resource being sold is
The following questions refer to the accompanying graph, which shows the supply and demand for a resource. The owner of the resource is receiving the price P0 and is providing the quantity Q0.
a. area A
b. area A + B
c. area A + B + C
d. area A + B + C + D
Holding all else constant, when interest rates fall,
(a) yields on common stocks rise above yields on bonds. (b) yields on common stocks fall below yields on bonds. (c) yields on common stocks and bonds rise at an equal rate. (d) yields on common stocks and bonds fall at an equal rate.
Refer to Figure 14.3. To maximize the number of workers hired, the labor union will agree to wage rate:
A) W0. B) W1. C) W2. D) W3. E) none of the above
If an individual firm in a market is a price taker, then:
a. it faces a horizontal demand curve. b. it is operating in a monopolistically competitive market. c. it sells its product at the market price that is solely determined by the buyers. d. it faces a positively sloped marginal revenue curve. e. it faces significant barriers to exit from the market.