Government outlays
a. are the same as "G" in the short-run macro model.
b. do not include transfer payments.
c. are always smaller than government purchases.
d. are always greater than government purchases.
e. tend to decline in the long run.
D
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Audrey is a corn farmer. This year the weather was fabulous, and she grew the best crop she has ever grown. Instead of being happy, she is sad because the great weather led to a huge corn surplus, and the price per bushel is much lower than usual. What type of government policy imposed on corn would help Audrey in this case?
a. price ceiling b. price floor c. producer tax d. distributor tax
Which of the following provides a good explanation of why multinational firms exist?
A. Internalization advantages that favor direct investment over contracting with independent foreign firms B. The need to shift financial capital between countries C. Firms lack inherent knowledge of foreign laws, procedures, and practices. D. Location factors that favor exporting over foreign production
The Bertrand theory of oligopoly assumes:
A. rivals will decrease output whenever a firm decreases its output. B. rivals will follow the learning curve. C. rivals will increase their output whenever a firm increases its output. D. firms set prices.
We use the midpoint formula in computing the price elasticity of demand coefficient in order to:
A. Make the coefficient value become independent of whether price goes up or down B. Convert absolute changes into percent-changes C. Eliminate the negative sign of the coefficient D. Make the coefficient become equal to the slope of the demand curve