Which of the following policies would a Keynesian expect to produce the largest increase in income?
a. a reduction in government spending of $100 billion
b. an increase in transfer payments of $100 billion
c. an increase in government spending of $100 billion
d. a tax cut of $100 billion
c
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Which of the following can help shape the incentive structure of the country of Gammaland?
a. resource availability b. prices c. income d. incentives e. All of the answers are correct
The aggregate demand curve for an economy depicts the:
a. quantity of goods and services demanded during a given time period at different interest rates, other things held constant. b. quantity of goods and services demanded at different price levels during different time periods, other things held constant. c. quantity of goods and services demanded at different price levels during a given time period, other things held constant. d. quantity of goods and services that the economy is capable of producing during a given time period, other things held constant. e. final quantity of goods and services actually produced by the economy during a given time period, other things held constant.
An antidrug policy that reduces the supply of heroin might:
A. increase street crime because the addict's demand for heroin is highly inelastic. B. reduce street crime because the addict's demand for heroin is highly elastic. C. reduce street crime because the addict's demand for heroin is highly inelastic. D. increase street crime because the addict's demand for heroin is highly elastic.
Which of the following is the best example of a quota?
A) a subsidy from the U.S. government to domestic manufacturers of tires to enable them to compete more effectively with foreign producers B) a limit on the quantity of tires that can be imported from a foreign country C) a 40% fee imposed on all imported tires D) a tax placed on all tires sold in the domestic market to help offset the impact of lost jobs in the domestic tire industry.