If, by law, we suppress free market prices to determine who gets what,
A) other criteria will come into play to ration scarce goods.
B) scarcity will be reduced or eliminated.
C) shortages will be reduced or eliminated.
D) there will be no alternative way to make the quantity demanded conform to the quantity supplied.
A
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A "Jumbo" CD is one in excess of
A) $1,000. B) $10,000. C) $50,000. D) $100,000.
An increase in the income tax rate leads to a large increase in deadweight loss if ________
A) the labor supply curve is highly elastic B) the labor supply curve is perfectly inelastic C) the labor demand curve is elastic D) the labor demand curve is perfectly inelastic
Refer to Figure 7.4. This isoquant exhibits:
A. increasing MRTSLK as we move to the southeast along the isoquant.
B. declining MRTSLK as we move to the northwest along the isoquant.
C. constant MRTSLK as we move along the isoquant.
D. declining MRTSLK as we move to the southeast along the isoquant.
The multiplier effect occurs when:
A. spending by one person generates income for others and causes others to spend more too, increasing the impact of the initial spending on the economy. B. the level of consumer confidence increases more than predicted given a tax cut. C. increased spending by one or more individuals causes others to react and increase their savings. D. None of these is true.