Politicians might hesitate to increase income and in-kind transfers to the poor because this could cause
A. Excessive demand for goods and services.
B. Private sector spending to overpower public sector spending.
C. An increase in unemployment.
D. A decrease in the budget deficit.
Answer: A
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The use of tariffs and quotas for trade protection results in
A. lower prices for domestic consumers. B. less revenue for the government. C. less rent-seeking activity. D. less efficiency in the economy.
In the figure above, an increase in the quantity of oil supplied but NOT an increase in the supply of oil is shown by a movement from
A) point a to point e. B) point a to point b. C) point a to point c. D) point a to point d.
Which of the following is a barrier to entry for a monopoly?
A) a patent B) severe diseconomies of scale C) close substitutes for the good or service exist D) All of the above answers are correct.
Explain what effect a reduction in productivity has on wage setting behavior, price setting behavior, the equilibrium real wage, the natural rate of unemployment, and the natural level of output
What will be an ideal response?