To compensate for the possibility of indirect crowding out, a government engaging in expansionary policy aimed at eliminating a recessionary gap could
A) reduce taxes rather than increase government spending.
B) increase spending less than the simplest Keynesian model would predict.
C) both reduce taxes and reduce spending to be able to achieve full employment.
D) increase spending more than the simplest Keynesian model would predict.
D
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Frequently, a public good can be adequately provided by private action when its benefits are
a. concentrated among a small number of people. b. equally valued by everyone. c. widespread. d. greater than its costs.
In the resource market:
A. businesses borrow financial capital from households. B. businesses sell services to households. C. households sell resources to businesses. D. firms sell raw materials to households.
The relative price of a smartphone is
A) the money price of the smartphone divided by the money price of some other good. B) the price of the smartphone compared with what students think it should cost. C) the amount it cost to make the smartphone. D) what the company earned for selling the smartphone.
Bank mergers require government approval because banking officials want to make sure that:
A. the merger will create a larger bank. B. the merger will not result in regulatory competition. C. the merger will not create a monopoly. D. the merged bank will be more profitable.