To offset the indirect crowding-out effects, a government engaging in expansionary policy aimed at eliminating a recessionary gap could
A. reduce taxes rather than increase government spending.
B. both reduce taxes and reduce spending to be able to achieve full employment.
C. increase spending more than the simplest Keynesian model would predict.
D. increase spending less than the simplest Keynesian model would predict.
Answer: C
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Using the figure above, suppose a subsidy of $15,000 per student is provided to private colleges. When the market is in equilibrium, marginal social benefit ________ marginal cost, and the number of students enrolled is ________
A) exceeds; above the efficient quantity B) exceeds; below the efficient quantity C) is below; above the efficient quantity D) is below; below the efficient quantity E) equals; efficient
In economics, the concept of opportunity cost is:
a. negated by ensuring that the government has a role in a capitalist society. b. defined to be the highest-valued alternative that must be forgone when a choice is made. c. best illustrated by knowing why consumers choose one good over another. d. quantifiable only if you know the real dollar price of the goods and services you are giving up to consume something. e. the methodology that government economists use to determine the total amount of the national debt.
Based on the studies of human decision making, which of the following statements is correct?
a. Most people are not bothered by perceived unfairness as long as they receive some compensation, even if the amount is very small. b. Most people are very willing to change their minds. c. Many people's preferences are inconsistent over time. d. All of the above are correct.
U.S. imports have topped U.S. exports every year since ________
a. 1966 b. 1976 c. 1956 d. 1986