The "crowding-out effect" refers to how a government budget deficit
A) shifts only the supply of loanable funds curve leftward.
B) shifts both the demand for and the supply of loanable funds curves leftward.
C) increases the equilibrium quantity of investment.
D) shifts only the demand for loanable funds curve leftward.
E) decreases the equilibrium quantity of investment.
E
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If the costs of production decrease, there is
A) an increase in aggregate supply and the AS curve shifts rightward. B) an increase in the quantity of real GDP supplied and a movement up along the AS curve. C) a decrease in aggregate supply and the AS curve shifts leftward. D) a decrease in the quantity of real GDP supplied and a movement down along the AS curve. E) an increase in aggregate supply and the AS curve shifts leftward.
Why does the profit-maximizing level of production occur at the point where marginal revenue equals marginal cost?
What will be an ideal response?
When buying a car from a dealership, to get the best bargain
a. Allow the dealership to make the first offer b. Keep a cushion of bargaining space in the quoted price c. Make a take it or leave it offer d. All of the above
The more complicated the process used to produce a good,
a. the greater are the transaction costs of organizing production through markets b. the lower are the transaction costs of organizing production through markets c. the less likely a firm will use administrative controls to organize the production process d. the more likely a firm will use the market to organize the production process e. the more likely consumers will choose to purchase the good over other alternatives in the market