When recessions occur, advocates of small government should recommend
A. reductions in the number of federal employees.
B. reductions in transfer payments.
C. reductions in taxes.
D. increases in transfer payments and government spending.
Answer: C
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The availability of substitutes makes the demand for a good less elastic
a. True b. False
Larry was accepted at three different graduate schools, and must choose one. Elite U costs $50,000 per year and did not offer Larry any financial aid. Larry values attending Elite U at $60,000 per year. State College costs $30,000 per year, and offered Larry an annual $10,000 scholarship. Larry values attending State College at $40,000 per year. NoName U costs $20,000 per year, and offered Larry a full $20,000 annual scholarship. Larry values attending NoName at $15,000 per year. Larry's opportunity cost of attending State NoName U is:
A. $15,000 B. $60,000 C. $30,000 D. $20,000
Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the market for apples at the intersection of D2 and S1 (point C). Which of the following changes would cause the equilibrium to change to point B?
A) a positive change in the technology used to produce apples and decrease in the price of oranges, a substitute for apples B) an increase in the wages of apple workers and an increase in the price of oranges, a substitute for apples C) an increase in the number of apple producers and a decrease in the number of apple trees as a result of disease D) a decrease in the wages of apple workers and an increase in the price of oranges, a substitute for apples
An example of an external debt is
a. French public debt held by Americans b. French investment in the United States financed by French debt c. French government debt held by French banks d. French public debt issued by French private companies e. U.S. government debt held by the Federal Reserve System