If the economy is in a recessionary gap, and the government attempts to balance the budget, the effect will be to
a. counteract the recession.
b. worsen and prolong the recession.
c. end the recession sooner.
d. increase the level of real GDP.
b
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Which of the following indicates an input is being overused relative to the optimal level?
a. MRP = P of input. b. MRP > P of input. c. MRP < P of input. d. MPP > P of output.
List three primary ways in which profits above "normal" interest rate levels can be earned
GDP per capita can be summarized to be:
A. a measure of average well-being in a country. B. the best measure of well-being for all citizens inside a country C. a gauge of the direction an economy when we examine GDP changes over one year. D. the measure of value of all activity inside a national economy.
Regulatory capture exists when
A. regulated firms form special interests and influence politicians who appoint regulators through campaign donations. B. regulated firms pay for favorable public media campaigns. C. the federal government successfully deregulates an industry. D. two or more firms merge to gain a majority market share.