Crowding out is reduction in:
A. corporate borrowing that is caused by an increase in private borrowing.
B. private borrowing that is caused by an increase in government borrowing.
C. private borrowing that is caused by an increase in corporate borrowing.
D. government borrowing that is caused by an increase in private borrowing.
Answer: B
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Workers earn more than half of the income generated by the production process.
Answer the following statement true (T) or false (F)
The firms in an oligopoly market structure agree to collude because:
a. it helps them to earn more profits. b. each firm wants to know the strategy of its rivals. c. each firm wants to charge a lower price for its product than its rivals. d. the firms want to maintain a healthy relationship with each other. e. it helps them to enjoy economies of scale.
In the short run, the monopolistically competitive firm will experience:
A. economic profits or losses, but in the long run only an economic profit. B. economic profits or losses, but in the long run only a normal profit. C. a normal profit, but in the long run only an economic profit. D. an economic profit, and also one in the long run.
The debate over the causes of recessions in the U.S. in recent years has included arguments about:
A. both monetary policy and higher oil prices. B. higher oil prices, but not monetary policy. C. decreases in exports. D. monetary policy, but not higher oil prices.