Starting from long-run equilibrium, the long-run impact of a war that raises government purchases, compared to the original equilibrium, is:
A. lower inflation and lower output.
B. higher inflation and the same output.
C. lower inflation and the same output.
D. higher inflation and higher output.
Answer: B
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Use the following graph for a perfectly competitive firm generating a loss in the short run to answer the next question.
Which of the following market changes would allow the firm to earn an economic profit?
A. an increase in the number of firms entering the industry B. a decrease in market demand C. a decrease in the price of the industry's product D. an increase in market demand
Supply-side economists:
a. saw influence beyond in both the Bush and Clinton administrations. b. disagreed with economist Arthur Laffer's views on taxes. c. were influential in President Reagan's decision to change the tax structure. d. believe that government regulations do not reduce productivity and undermine industrial efficiency.
Kim has $24 per week in her entertainment budget. She splits her time between going to the movies and yoga classes. Each movie costs $8 while each yoga class $3. The total utility from each of these activities is set out in the table below. What is Kim's total utility maximizing point?
fig17.PNG A. 2 movies, 2 yoga classes B. 1 movie, 5 yoga classes C. 3 movies, 0 yoga classes D. 0 movies, 8 yoga classes
From 2002 to 2014, long-term debt at four-year public institutions of higher education
A. doubled. B. increased four-fold. C. decreased by half. D. remained constant.