Which of these actions will occur to the budget constraint when an individual's income increases?
a. shifts outward
b. shifts backward
c. rotates clockwise
d. cannot be determined from the information given
a
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Contractionary fiscal policy uses ________ government spending and ________ taxes to increase aggregate economic activity
A) lower; higher B) higher; lower C) higher; higher D) lower; lower
Rate of return regulation is designed to allow a natural monopoly to
A) make an economic profit. B) make zero economic profit. C) underestimate its average cost. D) compete with any firm entering the market. E) make zero normal profit.
For quasi-experiments,
A) there is a particularly important potential threat to internal validity, namely whether the "as if" randomization in fact can be treated reliably as true randomization. B) there are the same threats to internal validity as for true randomized controlled experiments, without modifications. C) there is little threat to external validity, since the populations are typically already different. D) OLS estimation should not be used.
Every choice involves giving up an opportunity to produce or consume something else.
a. true b. false