Which of the following decreases aggregate demand?
A) The government increases taxes on both business and personal income.
B) Foreign incomes rise.
C) The quantity of money in the economy increases.
D) Households believe that the economy is headed for good times, with higher future incomes.
A
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Which of the following is true about exchange economies?
A. All core allocations are efficient. B. In 2-person exchange economies, the core is equal to the set of efficient allocations that is also mutually beneficial relative to initial endowments. C. In n-person exchange economies (with n>2), the core is smaller than the set of efficient allocations that is also mutually beneficial relative to initial endowments. D. (a) and (b) are true. E. (a) and (c) are true. F. (b) and (c) are true. G. All of the above are true. H. None of the above are true.
If the opportunity cost of producing more of one good increases as more of that good is produced, then the production method is inefficient
Indicate whether the statement is true or false
Why is the monopoly total welfare lower than the competitive total welfare?
What will be an ideal response?
Michael can produce the following combinations of X and Y: 10X and 10Y, 5X and 15Y, and 0X and 20Y. Vernon can produce the following combinations of X and Y: 100X and 20Y, 50X and 30Y, or 0X and 40Y. It follows that
A) Michael has the comparative advantage in producing X and Vernon has the comparative advantage in producing Y. B) Michael has the comparative advantage in producing Y and Vernon has the comparative advantage in producing X. C) Neither Michael nor Vernon has a comparative advantage in producing X. D) Neither Michael nor Vernon has a comparative advantage in producing Y. E) There is not enough information to answer the question.