Equilibrium output is reduced by an increase in
A) planned investment.
B) taxes.
C) government spending.
D) net exports.
B
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A reason why a perfectly competitive firm's demand for labor curve slopes downward is that
A) each additional unit of labor hired is less efficient than previously hired units. B) the extra cost of hiring additional units of labor increases as a firm hires more units of labor. C) in the short run, as more labor is hired, labor's marginal product falls because of the law of diminishing returns. D) the firm's demand curve for the product that uses labor is downward sloping.
An argument supporting promotion of the urban informal sector is
(a) the formal sector is incapable of providing enough employment. (b) informal sector workers are poorly educated. (c) it uses a relatively high capital intensity. (d) it would reduce urban bias.
The problem caused when people are often reluctant to voluntarily pay for goods and services that provide benefits for everyone, even for those who don't pay is called the:
A. drop in the bucket hypothesis. B. rational ignorance problem. C. moral hazard problem. D. free-rider problem.
In 2005, developed countries began to offer "aid for trade" programs that:
A. give developing nations funds in exchange for free trade agreements. B. give developing countries funds to develop industries that create exports the developed nations want. C. fund initiatives in developing countries that minimize trade barriers and provide infrastructure critical for trade. D. give developing nations funds in exchange for cheaper imports.