Deadweight loss results from a misallocation of resources
a. True
b. False
Indicate whether the statement is true or false
True
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If a “liberal” wanted to increase aggregate demand, which of the following would he or she tend to favor?
A. An increase in government spending, because it will increase the size of the public sector. B. A decrease in transfer payments, because it keeps the public sector small. C. An increase in transfer payments, because it has a larger multiplier than tax changes. D. A decrease in taxes, because it makes the public sector smaller.
Consider a perfectly competitive firm that produces computers. Each additional worker at this firm can produce four computers. Calculate the marginal factor cost if the computers are sold for $1,000 each, and the firm is maximizing profit. (Assume that marginal revenue product is the product of marginal product of the input and the marginal revenue of the firm.)
a. $4,000 b. $500 c. $1,000 d. $1,500 e. $400
Table 36-2 ? Domestic ? ? ? GDP Expenditure ? Exports Imports Total Expenditures (Y) C+ I + G (X) (IM) C+ I + G + (X?IM) $2,500 $3,100 $650 $250 _____ 3,000 3,400 650 300 _____ 3,500 3,700 650 350 _____ 4,000 4,000 650 400 _____ 4,500 4,300 650 450 _____ 5,000 4,600 650 500 _____ 5,500 4,900 650 550 _____ In Table 36-2, what are net exports when GDP = 3,500?
A. 400 B. 300 C. 200 D. 100
There is no control over price by firms in:
A. pure competition. B. pure monopoly. C. oligopoly. D. monopolistic competition.