If the government were to increase taxes, it would be enacting:
A. expansionary budgetary policy.
B. contractionary monetary policy
C. expansionary fiscal policy.
D. contractionary fiscal policy.
Answer: D
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Political scientist Elinor Ostrom won the 2009 Nobel Prize in Economics for demonstrating in detail how communities around the world
a. experience gaps in wealth and economic power. b. manage common pool resources effectively. c. see power as the ability to collaborate.
Figure 9-1 shows the marginal cost and average total cost curves for a perfectly competitive firm. If the market price is $10, then
a.
the firm earns $10 profit on each unit sold
b.
the firm earns $8 profit on each unit sold
c.
marginal revenue equals $10
d.
the firm is losing money in the short run
e.
marginal cost always equals marginal revenue
Suppose Stan owns a piece of property with a large lake. Initially, Stan and his family were the only people who swam in the lake. Then Stan started selling tickets to people who wanted to go swimming in the lake. When Stan died, he left the lake and the land it was on to the state, stipulating that the lake be left open to the public for swimming. Due to the lake's remote location, it was never crowded. When Stan started selling tickets to the public, the lake became a ________ good.
A. collective B. private C. public D. commons
Which of the following statements is true?
a.Perfect price discrimination can never lead to the most socially desirable level of output since it involves monopoly power. b.Even though the pharmaceutical industry cannot stop other countries from selling lower price drugs to U.S. residents, the industry's efforts to price-discriminate are profitable. c. Prestigious theaters that can sell tickets for operas for $500 should never sell tickets at $20 prices. d. You should never tip a host in a restaurant in order to avoid a long wait.