Given full-employment output = $2,800, equilibrium output = $2,500, and MPS = 0.25, which of the following changes would most likely bring the economy to a full-employment level of national output?
a. $300 decrease in taxes.
b. $75 increase in government spending.
c. $75 decrease in taxes.
d. $300 increase in government spending.
e. $75 decrease in government spending.
b
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Free markets promote all of society’s goals.
Answer the following statement true (T) or false (F)
Refer to the scenario above. If the market for Good Y is monopolistically competitive, a firm producing Good Y will shut down production in the short run if price falls below ________
A) $60 B) $200 C) $120 D) $50
The international unit of accounting used by the IMF is the
A) euro. B) special financial right. C) special drawing right. D) dollar.
If a person does not pay all costs associated with a particular resource-using activity, then
A) the external costs of the activity are greater than the private costs of the activity. B) the social costs of the activity are greater than the private costs of the activity. C) the external costs of the activity are greater than the internal costs of the activity. D) the full costs of the activity are the sum of private costs plus internal costs.