Special interest group Q receives a 1/10,000th slice of the economic pie. Its net benefit from either an economic growth policy or a transfer policy is $50,000. In order for group Q to be indifferent between the two policies, the economic growth policy would have to make the size of the economic pie (Real GDP) grow by _________________. This type of analysis is used to show that special interest
groups tend press government for ______________ instead of ________________.
A) $50,000,000; economic growth; transfers
B) $500,000; transfers; economic growth
C) $500,000,000; transfers; economic growth
D) $5,000,000; transfers; economic growth
E) none of the above
C
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If U.S. exports exceed U.S. imports and official reserves do not change, the United States
A) borrows from the rest of the world. B) makes loans to the rest of the world. C) borrows from the U.S. government. D) cannot sell any capital to foreigners. E) makes loans to the U.S. government.
On the graph above, if the U.S. economy is at point B in 2009, then the economy in 2010 is best represented by point ________
A) A B) B C) C D) D E) any of the labeled points is as good as the others
Restricting imports tends to
A) shift the demand curve for the product to the left. B) shift the demand curve for the product to the right. C) change the shape of the supply curve. D) increase the quantity supplied of a product.
If a multi-plant firm has three plants and uses each of the plants to produce its product, the marginal cost to produce the firm's product is equal to ________.
A) the sum of the marginal costs from each of the three plants B) the plant with the highest marginal cost C) the plant with the lowest marginal cost D) the sum of the average fixed costs from each of the three plants