The crowding-out effect suggests that:
A. Increases in consumption are always at the expense of saving
B. Increases in government spending will close a recessionary expenditure gap
C. Increases in government spending may reduce private investment
D. High taxes reduce both consumption and saving
C. Increases in government spending may reduce private investment
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The towns of Jekyll and Hyde each have a labor force of 2,000 people. In Jekyll, 500 people were unemployed for the entire year, while the rest of the labor force was employed continuously. In Hyde, every member of the labor force was unemployed for three months and was employed for nine months. The average duration of unemployment spells over the year was ________ months in Jekyll and ________ months in Hyde.
A. 12; 3 B. 3; 9 C. 12; 9 D. 3; 3
According to Robert Fogel, economic growth ________ health, and health ________ economic growth
A) worsens; worsens B) worsens; improves C) improves; worsens D) improves; improves
Microeconomics is the branch of economics that deals with
A) highly aggregated markets or the entire economy. B) the production side of the economy, exclusively. C) the buying side of the economy, exclusively. D) human behavior and choices as they relate to relatively small units --- an individual, a firm, an industry.
"Bill Gates has made billions of dollars producing and marketing computer software. Many workers and consumers must have observation suffered in order for Gates to amass such enormous wealth." The person who made this
a. has failed to understand the principle of opportunity cost. b. has failed to comprehend the fallacy of composition. c. has failed to understand that specialization and voluntary exchange result in mutual economic gain. d. has utilized the economic way of thinking by thinking the gains of producers are made primarily at the expense of consumers and workers.