For this question, assume that the Fed is expected to respond to any event by keeping output constant (i.e., equal to its initial level). An unexpected increase in government spending will cause
A) stock prices to fall.
B) stock prices to rise.
C) no change in stock prices.
D) an ambiguous effect on stock prices.
A
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In the economic way of thinking, a wetland is a scarce good. Thus,
A) there is a substitute for a wetland. B) there is no substitute for a wetland. C) wetlands should be preserved at any cost. D) wetlands can be preserved at no cost. E) economists don't like wetlands.
A recent article suggests that the introduction of the new iPhone 6 increased the demand for iPhone protective cases. The article suggests that these two goods are
A) substitutes and their indifference curves are close to being straight lines. B) complements and their indifference curves are close to being straight lines. C) substitutes and their indifference curves are close to being L shaped. D) complements and their indifference curves are close to being L shaped.
A telecommunication company divided into different divisions for residential and business Internet service is an example of
a. An M-form of an organization b. A functional organization c. An N-form organization d. All of the above
Diminishing marginal returns occurs when:
a. the marginal product of a variable input diminishes with each additional unit of the input. b. the marginal product of a variable input increases with each additional unit of the input. c. the marginal product of a fixed input diminishes with each additional unit of the input. d. the marginal product of a fixed input increases with each additional unit of the input.