Contractionary fiscal policy may have a larger effect in reducing aggregate demand in an open economy than a closed economy
a. True
b. False
Indicate whether the statement is true or false
False
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A fully licensed driver, Clarity Dence just drove her car to an "Earth Day" rally. By doing so, she exercises
A) her right to drive beyond the speed limit. B) her right to threaten and steal. C) her right to pollute. D) her right to park wherever she sees fit. E) none of the above.
According to economic theory, under perfect competition, the price of a depletable resource
A. becomes an inaccurate signal of scarcity. B. may fall as firms will develop substitutes. C. will be too volatile to let markets adjust. D. will increase as firms develop new innovations to extract the resource.
Refer to Table 1-2. Using marginal analysis, how many hours should Julius extend his shop's hours of operations?
A) 2 hours B) 3 hours C) 4 hours D) 5 hours E) 6 hours
Which of the following is an example of a public good?
A) flood control B) post office C) health care D) welfare