Refer to the information provided in Table 24.8 below to answer the question(s) that follow.Table 24.8All Figures in Billions of DollarsOutput (Income)Net TaxesConsumption Spending (C = 100 + 0.9Yd)SavingsPlannedInvestment PurchasesGovernment Spending2,6001002,3501501502002,8001002,5301701502003,0001002,7101901502003,2001002,8902101502003,4001003,0702301502003,6001003,2502501502003,8001003,430270150200Refer to Table 24.8. The economy is at the equilibrium level of output. If government spending decreases by $50 billion, the new equilibrium level of output is
A. $3,100 billion.
B. $2,400 billion.
C. $1,550 billion.
D. $1,450 billion.
Answer: A
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Quantity supplied means
A) the amount of a good consumers plan to purchase. B) the amount of a good suppliers plan to sell at a given price. C) the only level of output that producers can produce. D) the same thing as "supply."
A shortage of textbooks will cause
a. a decrease in the supply of textbooks b. a decrease in the demand for textbooks c. both an increase in the supply of textbooks and a decrease in the demand for textbooks d. an increase in the price of textbooks, caused by a shift of either the supply curve or the demand curve e. an increase in the price of textbooks
An example of a negative externality is
A. a consumer paying too much for an item. B. an apple orchard increasing the number of trees next to a bee farm. C. pollution. D. the Clean Air Act.
All of the following generate positive externalities EXCEPT
A) public health programs. B) a lower marginal tax rate for a household's income. C) requiring proof of inoculation before entering college. D) requiring proof of inoculation before entering elementary school.