Based on what we know about the globalized AS/AD model, the standard model does not include an analysis of:
A. consumption.
B. government spending in the United States.
C. investment.
D. net exports.
Answer: D
You might also like to view...
Long Beach Island, off the coast of New Jersey, is considering building a system of satellite towers that will enhance communication during emergencies such as hurricanes
The efficient quantity of satellite towers is definitely the quantity of such that the A) marginal social cost is equal to the marginal social benefit. B) marginal private cost is equal to the marginal social benefit. C) marginal social cost is less than the marginal social benefit. D) marginal private cost is less than the marginal social benefit.
West Coast Gas, Inc, is a natural gas supplier. The firm faces the demand schedule shown in the table above and cannot price discriminate
The company's fixed cost is $1,000 per month and its marginal cost is constant at $10 per thousand of cubic feet. The government imposes a marginal cost pricing rule on the company. a) What is the price of natural gas supplied by West Coast Gas? How many cubic feet does the company sell? What is the firm's economic profit per month? b) How does the regulation affect total surplus? c) Is the regulation in the social interest? Explain.
Individuals: a. respond to incentives in predictable ways
b. decrease the level of an activity in response to negative incentives. c. respond to positive incentives by increasing the level of activity. d. do all of the above.
A couple refuses to mow their lawn. Their neighbors take them to court, arguing using the logic of economic theory that
a. property rights are poorly defined because externalities exist b. they are free riders and entitled to the value of the externalities c. although there are no third parties because property rights are clear, the market still generates market failure d. although property rights are clear, there are still externalities that should be considered e. market failure can be avoided if the couple sells their property to any of the neighbors