Most economists agree that the focus of fiscal policy is to
A. plan the economy.
B. balance aggregate demand and aggregate supply.
C. balance the federal budget.
D. balance environmental needs and resources.
Answer: B
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Why do oligopoly firms find it difficult to cooperate and not cheat on a cartel agreement?
What will be an ideal response?
Economic rent is a concept that can be applied
A) only to land, as that is the only resource that is in limited supply. B) only to land and natural talent. C) to any factor of production that is fixed in supply. D) to any resource or factor of production that has a supply curve with a positive (upward) slope.
Monopolists who perfectly price discriminate produce the socially efficient level of output.
Answer the following statement true (T) or false (F)
Refer to Scenario 1.2 below to answer the question(s) that follow.SCENARIO 1.2: A scientist wants to understand the relationship between automobile emissions and the level of global warming. The scientist collects data on the volume of automobile emissions and the levels of global warming over time. The scientist concludes that a 1% increase in automobile emissions causes a 0.0003% increase in average global temperatures. From this information he concludes that the automobile emissions are harmful to the environment and should be reduced to stop the increase in global temperatures.Refer to Scenario 1.2. A graph of the volume of automobile emissions on one axis and the level of average global temperatures on the other axis is an example of
A. an economic theory. B. a variable theory. C. inductive reasoning. D. an economic model.