Incurring an internal debt to finance a war like World War II does not pass the true cost of the war on to future generations because:
A. The opportunity cost of wartime expenditures was borne by the generation that lived during the war
B. The Federal government can shift expenditures from military goods to the production of other public goods
C. The Federal government has the power to levy taxes to pay its debts
D. Wartime inflation reduces the relative size of the public debt
A. The opportunity cost of wartime expenditures was borne by the generation that lived during the war
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In the above figure, the short-run aggregate supply curve is SAS1. If technology advances, there is
A) an upward movement along SAS1. B) a downward movement along SAS1. C) a shift to SAS0. D) a shift to SAS2.
A monopolistically competitive market is characterized by:
a. one firm selling a unique product. b. many firms selling identical products. c. many firms selling similar but differentiated products. d. few firms selling identical products. e. few firms selling similar but differentiated products.
If price is unchanging across the firm's entire production range, then for the firm selling bagels at $0.40 each,
a. P = MR = AR b. MR = MC = AC c. TR = TC = 0 d. TR – TC = 0 e. AC = MC = TC
In Figure 3.1, if demand is considered perfectly inelastic, then the appropriate figure is?
a. Figure 1
B. Figure 2
c. Figure 3
d. Figure 4