In the above figure, if the demand curve is D2, then
A) the equilibrium price will be P1 and the equilibrium quantity will be Q2.
B) the equilibrium price will be P1 and the equilibrium quantity will be Q1.
C) there will be a shortage equal to Q2 - Q1.
D) an increase in price will shift the demand curve to D3.
A
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The progressive income tax is a money transfer system—from the taxpayer to government—and it is in the nature of this system that during recessions, less is taken from people than is taken in periods of prosperity. It is in this sense that the progressive income tax system is regarded by economists as
a. an unfair intervention in people's lives b. a countercyclical discretionary force c. a system that is unrelated to government spending d. an automatic stabilizer e. volatile and capricious
For each additional lamp produced, a constant opportunity cost is incurred in terms of bookshelves. This means
A) that it takes more resources to produce a lamp than a bookshelf. B) that it takes fewer resources to produce a lamp than a bookshelf. C) that for every lamp produced, a constant number of bookshelves is forfeited. D) that for every lamp produced, a different number of bookshelves is forfeited.
If Destiny can make either four chairs or one table in an hour and Greg can make either three chairs or two tables in an hour then
A. Destiny has the absolute advantage in the production of chairs. B. Greg has the absolute advantage in the production of chairs. C. Greg has the comparative advantage in the production of chairs. D. Destiny has the comparative advantage in the production of tables.
In Year 1, the actual budget deficit was $200 billion and the cyclically-adjusted deficit was $150 billion. In Year 2, the actual budget deficit was $225 billion and the cyclically-adjusted deficit was $175 billion. It can be concluded that fiscal policy from Year 1 to Year 2 became more:
A. Proportional B. Progressive C. Contractionary D. Expansionary