A change in net taxes affects the equilibrium quantity of GDP demanded_____
a. in the same way as a change in government purchases does
b. in the same way as a change in planned investment does
c. in the same way as a change in net exports does
d. only indirectly, changing the level of disposable income
e. in an unpredictable manner
d
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Suppose Argyle Sachs has to choose between building a smaller sweater factory and a larger sweater factory
In the following graph, the relationship between costs and output for the smaller factory is represented by the curve ATC1, and the relationship between costs and output for the larger factory is represented by the curve ATC2. a. If Argyle expects to produce 3,600 sweaters per month, should he build a smaller factory or a larger factory? Briefly explain? b. If Argyle expects to produce 5,000 sweaters per month, should he build a smaller factory or a larger factory? Briefly explain. c. If the average cost of producing sweaters is lower in the larger factory when Argyle produces 6,500 sweaters per week, why isn't it also lower when Argyle produces 4,000 sweaters per week?
Holding labor supply constant, a leftward shift in the labor demand curve results in a higher wage rate
a. True b. False Indicate whether the statement is true or false
Which of the following is a true statement regarding why the government produces public goods?
a. Public goods are valued highly by some but not by the majority. b. Because of the electoral system, the public sector tends towards producing those goods that help politicians get elected. c. Some goods should be produced whether they are economically efficient or not. d. Because it is difficult to exclude those who do not pay for public goods.
People from other countries who wanted to invest in U.S. mortgage-backed securities ______.
a. saw them as a stable investment b. viewed them as a high-risk with high-rewards c. were blocked by federal regulations d. were required to also directly own real estate in the United States.