If the crowding-out effect is strong, how will the potency of discretionary fiscal policy be affected?
a. It will make fiscal policy more potent.
b. It will make fiscal policy less potent.
c. The potency of fiscal policy will be unaffected.
d. The potency of contractionary will be reduced.
b
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Refer to Table 11-8. What is the minimum efficient scale of production?
A) 100 units B) 200 units C) 300 units D) 400 units
The following data give the dates of successive turning points in U.S. economic activity and the corresponding levels of real GDP at the time.Turning PointDateReal GDP(1996 $ billions) (A)July 19531992.2(B)May 19541941.0(C)Apr. 19572182.7(D)Apr. 19582117.4(E)Apr. 19602391.0Which of the turning points are troughs?
A. (A), (C), and (E) B. (A), (B), and (C) C. (C), (D), and (E) D. (B) and (D)
Suppose that George goes to his favorite ice cream store and buys three single -dip cones, the first for three dollars, the second for two dollars, and the third for one dollar, but enjoys no consumer surplus from the experience. We know that George must
a. have paid the same price for each cone b. have been cheated by the ice cream store-owner c. not like ice cream very much d. have paid prices for the cones that correspond to points on his demand curve e. not have maximized total utility that day
The medium of exchange is defined as
A) an object that is accepted in return for goods and services. B) the exchange of goods and services directly for goods and services. C) an item that can be stored and hold its value over time. D) credit cards. E) barter.