When the economy is producing ________, the aggregate supply curve becomes vertical.
A. beyond full capacity
B. at negative capacity
C. at full capacity
D. below full capacity
Answer: C
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Many believe that fairness calls for higher income taxes on the wealthy. Using one of the “Ideas for Beyond the Final Exam,” explain how higher taxes on the wealthy will affect output.
What will be an ideal response?
A 45-degree line on a graph with expenditures, E, on the vertical axis and production, Y, on the horizontal axis, represents
A) the line of disequilibrium levels of income. B) all possible equilibrium levels of production and expenditures. C) some of the equilibrium levels of production and expenditures. D) None of the above.
Which type of money has intrinsic value?
a. commodity money b. fiat money c. both commodity money and fiat money d. neither commodity money nor fiat money
Waybelow Normal University has found it necessary to institute a crime-control program on its campus to deal with the high costs of theft and vandalism. The university is now considering several alternative levels of crime control. This table shows the expected annual costs and benefits of these alternatives. Total Costs Per YearTotal Benefits Per Year (Reduction in the Costs of Crime)Level One - 1 Security Officer$20,000$80,000Level Two - 1 Security Officer with Guard Dog30,000120,000Level Three - 1 Security Officer with Guard Dog and Patrol Car40,000140,000Level Four - 2 Security Officers with Guard Dog50,000155,000Level Five - 2 Security Officers with Guard Dog and Patrol Car60,000160,000Refer to the above information. The marginal costs of additional levels of crime control are:
A. $20,000 for Level Three. B. $10,000 for Levels Two, Three, Four, and Five. C. $60,000 for Level Two. D. $5,000 for Level Five.