Which of the following pairs of goods includes a good that is excludable and rival in consumption as well as a good that is not excludable and not rival in consumption?
a. tablet computer, gym membership at a gym that always has plenty of open equipment and classes
b. tablet computer, national defense
c. congested nontoll road, national defense
d. online music subscription, streetlight
b
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The average total cost curve eventually slopes upwards because of the
A) law of diminishing returns. B) reductions in average fixed costs. C) increase in capital costs. D) decrease in labor costs.
The approach to understanding the determination of real GDP and the price level that emphasizes incomplete adjustment in the prices of many goods is
A) the classical model. B) the Keynesian model. C) Say's law. D) the aggregate demand model.
Structural budget surplus is the hypothetical surplus we would have under current fiscal policies if the economy were operating near full employment.
Answer the following statement true (T) or false (F)
In the traditional Keynesian model, a tax decrease
A. causes a leftward movement along the C + I + G + X line. B. causes the C + I + G + X line to shift upward. C. causes the C + I + G + X line to shift downward. D. causes a rightward movement along the C + I + G + X line.