Suppose economic conditions call for a tax increase but Congress does not implement this measure because an election is approaching. This is an example of which of the real-world problems associated with fiscal policy?
A. Time lags.
B. Pork barrel politics.
C. Crowding out.
D. Balancing the budget on the backs of the poor.
Answer: B
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Which of the following statements is true?
A) The marginal revenue of a monopolistically competitive firm will be positive at low prices and negative at high prices. B) The marginal revenue of a monopolistically competitive firm will be positive at high prices and negative at low prices. C) Because the demand curve for a monopolistically competitive firm is downward-sloping its marginal revenue will be negative. D) The marginal revenue of a monopolistically competitive firm will be always be positive.
If all resources are used efficiently to produce goods and services, a nation will find itself producing
a. inside its production possibilities frontier b. somewhere on its production possibilities frontier c. outside of its production possibilities frontier d. at one extreme end of its production possibilities frontier e. more of one product with no decrease in the production of any other product
A private investment firm that holds a portfolio of securities is called a mutual fund
a. True b. False Indicate whether the statement is true or false
Table 17.1Refer to Table 17.1. If the price of output is $2 per unit, the marginal revenue product of the eighth unit of labor is:
A. $10. B. $20. C. $310. D. $620.