Increased government purchases crowd out private purchases whenever the economy is
A. Experiencing an AD shortfall.
B. Facing serious cyclical unemployment.
C. Operating below full employment.
D. On the production possibilities curve.
Answer: D
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If a government imposes a quota on imports of a popular doll, the price of the doll in the country will ________ and the quantity purchased in the country will ________
A) rise; increase B) rise; decrease C) fall; increase D) fall; decrease
In a situation in which internal costs differ from social costs, we say that there exists a(n)
A) welfare loss. B) welfare benefit. C) internality. D) externality.
Which is not considered a need?
a. food b. clothing c. shelter d. smartphone
The minimum efficient scale is the output at which the long-run average cost curve becomes horizontal.
Answer the following statement true (T) or false (F)