The demand for money will increase when either the price level or real GDP increases
a. True
b. False
Indicate whether the statement is true or false
True
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List the five approaches used to solve the problem of externalities
What will be an ideal response?
Define tax expenditures. What are the costs and benefits to using tax expenditures for social policy rather than direct government expenditures?
What will be an ideal response?
Paul and Maggie advertise for a babysitter. Jenny is the only one who answers the ad and she's hired. She asks for $7 per hour and gets it. She occasionally thinks of raising the rate to $10 but is afraid that Paul and Maggie will decide to advertise again. This tale is analogous to
a. monopolistic competitive pricing b. the idea of nationalization c. contestable markets d. laissez-faire e. creative destruction
A constant-cost industry is one in which
A. output increases lead to productivity gains. B. there is no change in long-run per-unit costs, even as output varies. C. each firm has a horizontal long-run average cost curve. D. the marginal product of labor is constant.