The economy in the period 1950 to 1998 behaved differently than the economy in the 1870 to 1940 time period. Economists explain this difference
a. in part because of the use of stabilization policy.
b. because of increases in U.S. population due to the "baby boom."
c. in part because of the globalization of the economy.
d. in part because of the use of competition policy.
a
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The vertical distance between the total variable cost curve and the total cost curve ________ as output increases; the vertical distance between the average variable cost curve and the average total cost curve ________ as output increases
A) decreases; remains the same B) is constant; becomes smaller C) increases; becomes smaller at first but then increases D) increases; remains the same
If firms focus on quality
A) sales always go up. B) market share grows. C) they realize that it is not free. D) they are developing a common core competency. E) competitors follow suit making it less profitable.
If the social cost is greater than the private cost in a particular market, the private equilibrium will be at a quantity:
A. greater than or less than the socially optimum level, depending on the size of the external costs. B. equal to the socially optimal level. C. greater than the socially optimal level. D. less than the socially optimal level.
Which of the following is TRUE when a budget deficit exists?
A. Dissaving exists. B. A trade surplus exists. C. Tax revenues exceed government expenditures. D. Government expenditures exceed tax revenues.