If government adhered strictly to an annually balanced budget, the government's budget would
A. vary in a countercyclical fashion.
B. tend to destabilize the economy.
C. have no impact upon domestic output and employment.
D. tend to stabilize the economy.
B. tend to destabilize the economy.
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If Mother Teresa had spent $190,000 on a leprosarium in Calcutta, how would her purchase have directly affected U.S. GDP?
A) It would remain unchanged because the expenditure occurred outside the domestic economy. B) It would remain unchanged because Mother Teresa was not acting out of her own selfish interests. C) It would have increased by $190,000. D) It would have decreased by $190,000.
As the U.S. price level rises relative to price levels in other countries, what would happen in the U.S.?
a. consumption and net exports would decline b. consumption and net exports would increase c. consumption would increase and net exports would decrease d. consumption would decrease and net exports would increase e. consumption and net exports would remain constant
When the slope of the total production curve steepens, it means:
A. diminishing marginal product must hold. B. the marginal product must be decreasing. C. the marginal product must be increasing. D. None of these is true.
A union can influence the equilibrium wage rate by:
a. All of the answers are correct. b. lobbying for legislation to reduce immigration. c. collective bargaining. d. featherbedding.