Scarcity is illustrated graphically by a production possibilities frontier
a. True
b. False
Indicate whether the statement is true or false
True
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If the Fed's monetary policy reaction function does not change, then when inflation increases the Fed responds by ________ the real interest rate, which ________ consumption and investment spending, which ________ output.
A. increasing; increases; decreases B. decreasing; decreases; decreases C. increasing; decreases; decreases D. increasing; increases; increases
Which of the following is an example of the command approach to regulation?
a. The sale of tradable permits to emit sulfur dioxide in the Chicago Mercantile Exchange b. Enforcing private property rights and private ownership of elephants in Africa c. Zoning in many areas that restricts the types of buildings that can be built d. The government providing subsidies for public education e. A Pigouvian tax
If an economy consumes 75 percent of any increase in disposable income, then an increase in autonomous investment of $1 billion could result in an increase in total spending of as much as
A) $1.0 billion.. B) $4.0 billion. C) $5.0 billion. D) $1.8 billion. E) $6.0 billion.
Suppose a monopolist's costs and revenues are as follows: ATC = $45.00; MC = $35.00; MR = $35.00; P = $45.00. The firm should
A) increase output and decrease price. B) decrease output and increase price. C) not change output or price. D) shut down.