In the table above, which of the following is TRUE?
A) Jim and Sally have increasing marginal utility.
B) Jim has increasing marginal utility and Sally has diminishing marginal utility.
C) Jim has diminishing marginal utility and Sally has increasing marginal utility.
D) Jim and Sally have diminishing marginal utility.
D
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Crowding out refers to
A) increases in consumption, investment, or net exports caused by an increase in government purchases. B) increases in tax revenues associated with increases in tax rates. C) reductions in tax revenues associated with increases in tax rates. D) decreases in consumption, investment, or net exports caused by an increase in government purchases.
A single-price monopoly is producing at an output level where marginal revenue is $15, marginal cost is $13, and price is $20. This monopoly is
A) not maximizing its profit and should decrease output to increase its profit. B) not maximizing its profit and should increase output to increase its profit. C) maximizing its profit but should shut down. D) maximizing its profit and should not shut down. E) maximizing its profit but still should decrease output to earn even more profit.
The federal budget process begins when federal agencies submit their budget requests to the:
A. Treasury Department. B. Council of Economic Advisors (CEA). C. Office of Management and Budget (OMB). D. Congressional Budget Office (CBO).
According to the Keynesian model,
A. aggregate demand plays no part in determining the price level in a hyperinflationary economy. B. aggregate demand alone determines the levels of output and employment when an economy is in the midst of a depression. C. aggregate supply alone determines the price level when an economy experiences creeping inflation. D. market economies can never be plagued by protracted downturns in economic activity.