If the government uses tax money to pay for long-term investments such as roads or other infrastructure, what happens to the economy?
(A) Taxes decrease
(B) Investment decreases
(C) Investment increases
(D) Taxes increase
Ans: (C) Investment increases
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A change in the slope of a budget constraint indicates:
A) a change in the price of either good that causes a change in the opportunity cost. B) a change in the consumer's income. C) a change in the price of either good without a change in the opportunity cost. D) a change in the consumer's tastes and preferences.
In contrast to the typical Republican Party laissez-faire policies, President Richard Nixon in 1971 introduced
a. mandatory drug testing of cabinet officers. b. monetary targets for the Federal Reserve Board. c. wage and price controls. d. mandatory gold purchases by the U.S. Treasury.
Which of the following basic economic concepts most clearly provides the foundation for the long-run aggregate supply curve?
a. the law of demand b. the production possibilities curve c. the law of comparative advantage d. the law of diminishing marginal utility
If a firm is a natural monopoly, society will benefit if it is broken into several small companies.
Answer the following statement true (T) or false (F)