If there was a federal budget surplus and the government decided to either increase spending or decrease taxes,
A. The budget surplus would get smaller.
B. The budget surplus would remain unchanged.
C. The budget surplus would get larger.
D. None of the choices are correct.
Answer: A
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In monopolistic competition, there is inefficiency because price is greater than marginal cost. What brings about this inefficiency?
A) high concentration, as indicated by the large concentration ratio B) product differentiation C) freedom of entry and exit D) marginal cost rises as more output is produced E) the fact there are many firms in the market
The magnitude of the slope of the budget line is equal to the ________ or ________ of the good plotted on the ________ in terms of the other good
A) relative price; marginal cost; y-axis B) relative price; total cost; y-axis C) relative price; opportunity cost; x-axis D) price; opportunity cost; x-axis
A chief purpose of long-term contracts is to improve agents'
A) information. B) incentives. C) control over principals. D) security.
The comparative advantage in a specific good can shift over time from one country to another, as the other countries can produce it at a cheaper cost after imitating the technology
a. True b. False Indicate whether the statement is true or false