Which of the following would reduce GDP by the greatest amount?
A. A $20 billion increase in taxes.
B. $20 billion increases in both government spending and taxes.
C. $20 billion decreases in both government spending and taxes.
D. A $20 billion decrease in government spending.
D. A $20 billion decrease in government spending.
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Answer the following statement(s) true (T) or false (F)
1. The price of a good accurately reflects the total value it creates for society. 2. The Invisible Hand Theorem shows that competitive markets create the maximum possible social gain, even when all interactions among the markets are taken into account. 3. In an Edgeworth box, all Pareto-optimal allocations lie within the region of mutual advantage. 4. In an Edgeworth box economy, a competitive equilibrium must lie on the contract curve within the region of mutual advantage. 5. The gains from international trade are greatest when a country's autarkic relative prices are similar to the world relative prices.
If income were equally distributed, a nation's Lorenz curve would be identical to the _______________.
Fill in the blank(s) with the appropriate word(s).
So long as production in the oligopoly still occurs, recurring fixed costs have no impact on output under Cournot competition but do have an impact under Bertrand competition.
Answer the following statement true (T) or false (F)
What are the likely effects of a sovereign debt crisis in terms of the government's ability to finance its debt?
What will be an ideal response?