The concept of rational ignorance can explain why the government might provide more than the efficient quantity of a public good
Indicate whether the statement is true or false
TRUE
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As the number of firms in an oligopoly increases, the magnitude of the price effect increases
a. True b. False Indicate whether the statement is true or false
Whenever income is less than expenditure for a period of time, a nation will experience:
A) a deficit in its current account B) A surplus in its current account C) A fall in GDP D) None of the above
When the economy is in the Keynesian range, an increase in aggregate demand will
A. increase the price level and have no effect on real national output. B. increase the real national output and have no effect on the price level. C. increase both real output and the price level. D. increase the price level and decrease the real national output.
The argument that the national debt imposes a burden on future generations becomes more compelling as
A. the percentage of the national debt held by foreigners rises. B. tax rates rise. C. interest rates fall. D. debt service payments (interest) rise.