If policymakers implement an expansionary fiscal policy but do not take into account the potential for crowding out, the new equilibrium level of GDP is likely to
A) be at potential GDP.
B) be below potential GDP.
C) be above potential GDP.
D) There is insufficient information given here to draw a conclusion.
B
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Wage differentials between occupations can be explained by all of the following except
A) the relative differences between demand and supply in various occupations B) the fact that some occupations are more desirable than others. C) the market power of different employers. D) the fact that some occupations require higher levels of human capital than others.
You lose your job and as a result your demand for steak falls. This implies that you consider steaks to be a
a. Complementary good b. Normal good c. Inferior good d. Substitute good
For a market to be characterized by monopoly, there must be
A. freedom of entry and exit. B. a single seller. C. indistinguishable products being sold. D. a large number of firms with no one able to influence price.
Economics is the study of
A) nonhuman phenomena. B) the determinants of preferences. C) scarce resources and unlimited wants. D) the physical sciences.