Keynes argued that when the economy is in a slump, an extra dollar of savings by households will:
A. translate into highly risky investment spending by firms.
B. translate into an additional dollar of investment spending by firms.
C. not necessarily translate into an additional dollar of investment spending by firms.
D. translate into more than an additional dollar of investment spending by firms.
Answer: C
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In 1990-1991, the government budget deficit ________ mainly due to the ________
A) rose, recession's effect on tax collection B) rose, expenditures of the Persian Gulf War C) fell, recession's effect on government expenditures D) fell, economic stimulus provided by the Persian Gulf War
If a firm has increasing returns to scale at all levels of output, the
A. slope of its long-run total cost curve is always negative. B. slopes of its short-run average cost curves are always negative. C. slope of its long-run average cost curve is always negative. D. slope of its production function is always negative.
Unlike the person or persons who formally form a sole proprietorship or partnership, a corporation has
(a) a perpetual life. (b) unlimited liability for the debts accumulated by the firm. (c) the right to vote. (d) concentrated ownership.
Both public goods and common resources are
a. rival in consumption. b. nonrival in consumption. c. excludable. d. nonexcludable.