Using marginal analysis, an economist would judge the proper distribution of government spending by comparing
A. the amount spent with the amount spent in the previous year.
B. whether the last dollar spent on one program would have been better spent on another.
C. whether the last dollar spent would have been better left in private hands.
D. whether the last dollar spent garnered any value to society.
Answer: B
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In the above table, net exports equal a
A) surplus of $200 billion. B) deficit of $200 billion. C) surplus of $100 billion. D) deficit of $100 billion.
Assume a money multiplier of 3. If the Treasury finances a $30 million expenditure by selling securities to the Fed, the money supply could ultimately
A) rise by $3 million. B) rise by $10 million. C) rise by $30 million. D) rise by $90 million.
For a firm to maximize total profits through price discrimination, it should
a. Charge a high price to consumers with an inelastic demand and low price to consumers with an elastic demand b. Charge a low price to consumers with an inelastic demand and high price to consumers with an elastic demand c. Charge the same price to both sets of consumers d. Charge nothing to both set of consumers-throw a party
The law of demand is the principle that there is ________ relationship between the price of a good and the quantity buyers are willing to purchase in a defined time period, ceteris paribus
a. a direct b. an inverse c. an independent d. no