The value of total output and total income in the simple circular flow model
A) include only intermediate goods.
B) are equal to each other.
C) are measures of the economy's level of savings.
D) are related in the sense that national income is less than national product.
B
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According to the Application, Hazlitt's argument that the broken window is NOT good for society
A) works in both the Keynesian and classical worlds regardless of where the economy is operating relative to full employment. B) works in the Keynesian world when the economy is operating below full employment. C) works in the classical world when the economy is operating at full employment. D) never works in the Keynesian or classical worlds regardless of where the economy is operating relative to full employment.
Refer to Scenario 6.1. Suppose the friends are forced by government to combine their businesses and share what they make
With this revision to the scenario, if both Tasha and Gloria play their dominant strategies, Tasha's net payoff will be ________ and Gloria's net payoff will be ________. A) $15; $12 B) $15; $15 C) $30; $30 D) $12; $12
When a tax is placed on sellers:
A. sellers always bear a higher incidence than buyers. B. buyers always bear a higher incidence than sellers. C. the effect on the price buyers pay and sellers receive is the same as a tax on buyers. D. None of these is true.
An important difference between a perfectly competitive firm and a monopolist is that
a. the perfectly competitive firm tends to be larger b. only the monopolist attempts to maximize profit c. only the perfectly competitive firm maximizes profit d. the perfectly competitive firm faces a horizontal demand curve and the monopolist faces a downward-sloping demand curve e. only the monopolist maximizes profit at the quantity where marginal cost equals marginal revenue