Some people have argued that government should provide only those goods that we would truly define as public goods. If so, which of the following should government produce?
a. National Defense
b. day-care centers for children of working mothers
c. mail delivery
d. unemployment benefits
e. subsidies for agricultural products
A
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Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. lower; higher D. higher; potential
An investor who sees through irrational optimism of a market could:
A. earn a profit by betting against what everyone else is doing. B. follow the lead of what most are doing, and earn consistent profits. C. earn a profit by being a "leader" among the "herd." D. be overwhelmed by market optimism and simply do what everyone else is doing.
Supply-side economists believe that:
A. Government regulation is necessary to ensure the correct mix of output. B. A decrease in regulation will shift the aggregate supply curve to the right. C. A decrease in regulation will allow producers to abuse consumers. D. Government regulation encourages long-run economic growth.
Opportunity cost exists because
A) resources in this world are scarce. B) prices must adjust to eliminate shortages. C) production could not occur without the opportunity cost of using resources. D) the value of economic goods is positive while the value of goods is zero.