If the costs of coordination and enforcement are _______________ the surplus lost to the externality, then ________________.
A. higher than; a private solution will not work
B. lower than; a private solution will not work
C. higher than; a private solution will work
D. None of these statements is true.
A. higher than; a private solution will not work
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Part of the spending on the Doyle Drive project in northern California came from the American Reinvestment and Recovery Act, which is an example of ________ aimed at increasing real GDP and employment
A) an automatic stabilizer B) a transfer payment C) discretionary fiscal policy D) contractionary fiscal policy
If the Fed does not take into account the additional policy channels available in an open economy, then ________ when conducting contractionary monetary policy
A) it is likely to increase GDP too little and cause a recession B) it is likely to decrease GDP too little and inflation will persist C) it is likely to decrease GDP too much and cause a recession D) it is likely to increase GDP too much and inflation will persist
When considering the factor distribution of income, which of the following income is represented as proprietor income?
A. Interest for loans on capital. B. Rent for capital. C. Wages for workers D. Labor or capital factors that proprietors put into their businesses
Relative prices formed in a market process
What will be an ideal response?