Figure 17-10
Refer to . With trade and without a tariff, the price and domestic quantity demanded are
a.
P1 and Q1.
b.
P1 and Q4.
c.
P2 and Q2.
d.
P2 and Q3.
b
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Expansionary fiscal policy is used to
A) combat inflation. B) combat recessions. C) encourage private saving. D) make businesses more efficient.
According to many economists, production that occurs in the underground economy
a. has no market value and therefore should not be included in GDP b. is given too much weight by the Bureau of Economic Analysis, causing GDP to overstate true output c. consists exclusively of illegal production activities such as drug selling and prostitution d. is accurately accounted for by the Bureau of Economic Analysis in its measurement of GDP e. is given insufficient weight by the Bureau of Economic Analysis, causing GDP statistics to understate true output
Which of the following explains why many European countries have unemployment rates that are higher than in the United States?
A) Technological change occurs at a faster rate in Europe, so structural unemployment is higher in Europe. B) European countries offer higher unemployment benefits than the United States. C) Firms in European countries offer employees higher wages and higher benefits than do firms in the United States. D) The minimum wage in Europe is lower than it is in the United States.
A profit?maximizing firm in a monopolistically competitive market structure behaves much like a ________ in the short run.
A. dominant firm B. monopolistic firm C. Cournot duopolist D. perfectly competitive firm