Use the following diagram to answer the next question.
All else equal, which of the following events would cause a shift from (I + G + NX)1 to (I + G + NX)2?
A. Domestic residents purchased $75 million of oil from Saudi Arabia.
B. Government spending on national defense was reduced by $1 billion.
C. Businesses built 250 new apartment buildings.
D. The government cut taxes by $100,000 million.
Answer: C
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When perfect price discrimination comes in the form of a two-part tariff, one part of the "tariff" just covers marginal costs.
Answer the following statement true (T) or false (F)
When investment banks buy or sell securities on their own account, it's called
A) financial engineering. B) proprietary trading. C) underwriting. D) factoring.
Which of the following is an example of a negative externality? a. A Japanese company exports cars to the U.S., which causes American workers to lose their jobs
b. An employee of a chemical company spills acid on his arm, causing severe damage. c. John plants fruit trees in his front yard, which attracts bees, which sting neighbor Mary. d. Sally buys coffee at McDonald's, spills some and burns her hand. e. Jack attempts to fix his roof, falls off, and breaks his leg.
The slope of the production function with capital per worker on the horizontal axis and output per worker on the vertical axis
a. is positive and gets steeper as capital per worker rises. b. is positive and gets flatter as capital per worker rises. c. is negative and gets steeper as capital per worker rises. d. is negative and gets flatter as capital per worker rises.