Lindahl prices for collective consumption goods are _____
a. are sufficient to achieve political agreement on the optimal level of output
b. are necessary to achieve political agreement on the optimal level of output
c. are sufficient for economic efficiency
d. are necessary for economic efficiency
c
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All else equal, a decrease in government borrowing is likely to cause a(n):
A) upward movement along the credit demand curve. B) rightward shift of the credit demand curve. C) leftward shift of the credit demand curve. D) downward movement along the credit demand curve.
In a closed economy, the impact to aggregate demand from a decrease in fiscal spending is
A) a shift to the left. B) zero. C) a shift to the right. D) reversed by changes in the exchange rate.
As their respective names imply, monopoly and monopolistic competition are the most similar of the four market structures
Indicate whether the statement is true or false
Consider the market for Hewlett-Packard printers, depicted in the figure to the right, where the supply of HP printers has increased from S1 to S2. What would cause the supply curve for HP printers to shift to the right?
A. a decrease in the price of a substitute in production B. a decrease in the price of an input C. a higher expected future price for HP printers D. both A and B E. all of the above