Which of the following is an example of antitrust legislation?
a. a law that breaks up an oil monopoly
b. a law that approves a subsidy for drug research
c. a law that prevents price fixing in the CD industry
d. a law that requires a construction firm to stop predatory pricing
Ans: a. a law that breaks up an oil monopoly
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Refer to Figure 13-3. Which of the points in the above graph are possible short-run equilibria but not long-run equilibria? Assume that Y1 represents potential GDP
A) A and B B) B and D C) A and C D) C and D
How does a change in taxes primarily affect aggregate demand? a. A tax change alters exports and net exports
b. A tax change alters investment by an equal and opposite amount. c. A tax change alters disposable income and consumption spending. d. A tax change alters government purchases by an equal amount.
When the price of a resource is set below equilibrium,
a. excess demand for the resource will occur. b. excess supply of the resource will result. c. the supply of the resource will be inelastic. d. the demand for the resource will be inelastic.
The mainstream view among economists is that
a. society faces a tradeoff between unemployment and inflation, but only in the short run. b. society faces a tradeoff between unemployment and inflation, but only in the long run. c. society faces a tradeoff between unemployment and inflation, both in the short run and in the long run. d. no tradeoff exists between unemployment and inflation, either in the short run or in the long run.