When deciding whether or not to provide a public good, a government's policy should be to provide the good where society's marginal benefit is smaller than the marginal cost of the good
a. True
b. False
Indicate whether the statement is true or false
False
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Referring to the Economic Stimulus Act of 2008, the expansionary effect of the government stimulus was overwhelmed by the continuing deterioration in credit market conditions
Everything else held constant and using the ISLM model, the net effect would cause the ________ curve to ________ and output will ________. A) IS; shift left; decrease B) IS; shift right; increase C) LM; shift right; increase D) LM shift left; decrease
If real GDP is increasing more rapidly than the population, then: a. interest rates must be falling
b. the economy must be experiencing inflation. c. per capita real GDP will be increasing. d. per capita real GDP will be decreasing.
When a country occasionally buys or sells currencies to influence the exchange rate, but usually lets market forces determine the exchange rate, it has a:
A. fixed exchange rate. B. partially-flexible exchange rate. C. flexible exchange rate. D. gold standard.
A firm's net income is also its
A) economic profit. B) balance sheet. C) accounting profit. D) opportunity cost.