When a country starts exporting a good, there is no change in the surplus enjoyed by the domestic consumers of the good
a. True
b. False
Indicate whether the statement is true or false
False
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Suppose the economy is at a short-run equilibrium GDP that lies below potential GDP. Which of the following will occur because of the automatic mechanism adjusting the economy back to potential GDP?
A) Unemployment will rise. B) Prices will increase. C) Output will decrease. D) Short-run aggregate supply will shift to the right.
In a perfectly competitive labor market, the labor supply curve facing the firm will be
A) upward sloping. B) downward sloping. C) horizontal. D) vertical.
Which of the following is not a typical solution to the "Tragedy of the Commons?"
a. taxing the use of the common resource b. turning the common resource into a club good c. turning the common resource into a private good d. regulating the use of the common resource
If the government decreases the income tax rate, they assume it will affect which component of GDP?
A. NX B. C C. G D. A change to the income tax rate will not affect any of these components.