The multiplier effect
a. and the crowding-out effect both amplify the effects of an increase in government expenditures.
b. and the crowding-out effect both diminish the effects of an increase in government expenditures.
c. diminishes the effects of an increase in government expenditures, while the crowding-out effect amplifies the effects.
d. amplifies the effects of an increase in government expenditures, while the crowding-out effect diminishes the effects.
d
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Suppose manufacturers introduce a new model car to replace a car currently included in the CPI basket. The price of the new car is 10 percent higher than the discontinued model, but the new car has additional safety features and amenities. In this situation the CPI will tend to ________ inflation as a result of ________ bias.
A. accurately measure; substitution B. overstate; quality adjustment C. overstate; substitution D. understate; quality adjustment
Which of the following would cause a fall in the market interest rate?
a. an increase in the risk cost of investment b. an increase in the inflation rate c. an increase in the marginal rate of return on investment d. a decrease in the marginal product of capital e. none of the above
Schumpeter and Galbraith believed that concentrated industries had lower rates of technological advances than less concentrated industries.
Answer the following statement true (T) or false (F)
Refer to the information provided in Figure 13.9 below to answer the question(s) that follow. 
Figure 13.9 Refer to Figure 13.9. If Ohio Edison engages in rent-seeking behavior to maintain their monopoly, the true ________ is BEC and the portion of area FGBE that pays for the rent-seeking behavior.
A. net social gain from monopoly B. consumer surplus C. producer surplus D. net social cost of monopoly