Which of the following would most likely occur if the federal government decreased its spending and reduced the size of the budget deficit during a period of full employment?
A. The rate of inflation would decline.
B. The rate of inflation would rise.
C. A recession would develop.
D. Interest rates would fall.
Answer: A
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Refer to Scenario 2.2. Under what circumstances will the equilibrium level of output of dental care increase?
A) If supply shifts more than demand. B) If demand shifts more than supply. C) If both demand and supply shift by the same magnitude. D) If supply and demand both decrease.
Producers of computer software are plagued with the problem of “pirating,” that is, many people copy software legally purchased by others. The industry estimates that for each legal copy of a program, there are two pirated copies in use. The industry wants strict laws for the enforcement of its “intellectual property rights,” but enforcement is obviously very difficult. Economists call this problem
A. depletability. B. externality. C. durability. D. nonexcludability.
Refer to the Article Summary. Senator Pat Toomey brought the Fed's credibility into question when it once again delayed raising interest rates despite several prior announcements alluding to timing for a potential interest rate hike
Prior to this, over the past two decades whenever a change in Fed policy had been announced, the change has ________ taken place, leading to ________ credibility. A) rarely; less B) rarely; greater C) actually; greater D) actually; less
Inefficient use of resources leads to:
a. production bundles inside the production set. b. production bundles outside the production set. c. a reduction in the production set. d. production of a combination on the production set.