Assuming the economy is represented by the graph shown, if the government were to enact a partially successful expansionary fiscal policy, it would be most likely to:
A. move from equilibrium A to B.
B. move from equilibrium B to A.
C. cause unemployment to temporarily increase.
D. cause deflation.
A. move from equilibrium A to B.
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Goods that are very useful and highly desired are likely to be
A) expensive if they are relatively abundant. B) inexpensive if they are relatively abundant. C) inexpensive if they are relatively rare. D) expensive no matter if they are relatively abundant or rare.
Suppose that producers are richer than consumers. Is a price support program fair? Explain your answer
What will be an ideal response?
A cable company can add a subscriber for ________ and a market failure occurs because the price charged ________
A) nearly zero marginal cost; exceeds marginal cost B) less than average cost; reduces consumer surplus C) nearly zero marginal cost; is extortionist D) average variable cost; increases producer surplus
What all is included in the calculation of government purchases?
a. clearing snowy roads b. buying public library books c. clearing court dockets d. all of the above are used in the calculation of government purchases