A sudden increase in immigration would be considered a(n):
A. short-run supply shock.
B. long-run supply shock.
C. interest-rate shock.
D. A change in immigration would not affect any of these.
B. long-run supply shock.
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The United States need never pay off the national debt; it can simply refinance the debt when it comes due. The flaw in thinking that the government must pay it off is based on the fallacy of
a. benefit-cost ratio. b. post hoc, ergo propter hoc. c. composition. d. a priori expectations.
Which of the following is not one of the functions of the Federal Reserve?
A. clearing checks B. printing currency C. supervising and regulating banks D. controlling the money supply
A firm will continue to produce in the short run even though economic profits are negative as long as
A. it earned positive economic profits last year. B. the amount of the loss is no greater than the amount of fixed cost. C. it has fixed obligations to pay. D. MC = MR.
What does it mean to internalize an externality?
What will be an ideal response?