Refer to Figure 15-7. Suppose the economy is in a recession and no policy is pursued. Using the static AD-AS model in the figure above, this situation would be depicted as a movement from
A) C to D. B) A to B. C) C to B. D) A to E. E) B to A.
D
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Collective decision making costs _____
a. decrease as we get closer to unanimity b. increase as more people have to agree c. are an impediment to individual action d. are the reason why simple majority rule is always optimal
Suppose you are an economic researcher, and you have access to detailed information about all of the firms in a given geographic area. You would conclude that the pollution reduction policy in that area is efficient if you observe that:
A. the cleanest firms are also the most profitable. B. all firms produce approximately the same amount of pollution. C. all firms currently use the same pollution reduction technology. D. the marginal cost of reducing pollution is the same for all firms at current emissions levels.
The production possibilities curve demonstrate which of the following concepts?
A) scarcity
B) choice
C) trade-offs
D) all of the above
Which of the following is not a result if the quantity supplied exceeds the quantity demanded in a market?
A. Deadweight loss B. Inefficiency C. Overproduction D. Shortage