If significant economies of scale are present, large firms will be much more efficient producers than small firms
a. True
b. False
Indicate whether the statement is true or false
True
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When a tax is levied on a good, the buyers and sellers of the good share the burden,
a. provided the tax is levied on the sellers. b. provided the tax is levied on the buyers. c. provided a portion of the tax is levied on the buyers, with the remaining portion levied on the sellers. d. regardless of how the tax is levied.
How do spending levels impact the economy in an inflationary period?
A. Overall spending generally remains unchanged. B. Consumers and businesses spend less. C. Consumers spend less, but businesses tend to spend more. D. Consumers keep spending no matter what; businesses are more cautious
Exhibit 16A-3 Macro AD/AS Model
As shown in Exhibit 16A-3, assume the marginal propensity to consume MPC equals 0.80. Using discretionary fiscal policy, federal government spending should be _________ in order to restore the economy from E1to full employment.
A. increased by $2 trillion B. decreased by $2 trillion C. decreased by $.40 trillion D. increased by $.80 trillion
In which of the following cases did the government break up a monopoly?
A. Staples/Office Depot B. Interstate Bakeries and Continental Bakery C. Xidex D. AT&T