Which of the following government functions most clearly prevents rent-seeking behavior from leading to a socially inefficient Nash equilibrium?
a) provision of national defense
b) operation of Social Security
c) provision of public education
d) issuance of patents
e) establishing municipal rent control on urban apartments
d) issuance of patents
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A decrease in aggregate demand will
A) cause the short-run Phillips curve to shift to the right. B) decrease unemployment. C) move the economy to a lower point on the short-run Phillips curve. D) cause inflation.
Which of the following is NOT an example of price? discrimination?
A. Student discount at a local movie theater. B. Pharmaceutical companies charge customers living in wealthier countries higher prices than for identical drugs in poorer nations. C. A hard cover book selling for more than the same book in electronic form. D. Breakfast cereal makers sending coupons to select buyers.
If vouchers for a good or service given to consumers, then the supply curve ________ and the demand curve ________
A) shifts leftward; shifts leftward B) shifts leftward; shifts rightward C) shifts rightward; shifts rightward D) does not shift; shifts rightward E) shifts rightward; does not shift
Which of the following variables will shift the classical aggregate demand curve?
a. An increase in government spending b. A decrease in taxes c. An increase in autonomous investment expenditures d. An increase in the money stock e. All of the above