Briefly discuss two factors that have increased government expenditures in recent decades.
What will be an ideal response?
One factor that has increased government spending is terrorism. Since the attacks of September 11, 2001, the government has spent more money on national defense to try to fight and prevent terrorism. Another factor is the aging population. Older people are drawing more Social Security because they are living longer, and they also have higher medical bills, which impacts Medicare.
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Why are cartels among firms usually kept secret?
What will be an ideal response?
The long-run aggregate supply curve ______.
a. has the same slope as the short-run aggregate supply curve b. has the same slope as the short-run aggregate demand curve c. is perfectly horizontal at the minimum price level in the economy d. is perfectly vertical at the natural rate of output in an economy
An improvement in a firm's technology that improves productivity results in a(n):
A. leftward shift of the supply curve. B. upward movement along the supply curve. C. willingness to supply a larger quantity than before at any given price. D. downward movement along the supply curve.
What is the free-rider problem and how does it cause the underproduction of a public good in a competitive market?
Please provide the best answer for the statement.