Professor Cowen says that fiscal policy would make more sense if we:
A. relied more heavily on tax cuts than we currently do for fiscal policy.
B. ran government budget deficits in years in which the unemployment rate was high.
C. used a combination of tax cuts and increases in government spending.
D. actually had government budget surpluses in years in which the economy was in good health.
Ans: D. actually had government budget surpluses in years in which the economy was in good health.
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In the foreign exchange market, the
A) supply of dollars decreases as the exchange rate increases and the quantity of dollars supplied does not change. B) quantity of dollars supplied increases as the exchange rate decreases and the supply of dollars does not change. C) quantity of dollars supplied increases as the exchange rate increases and the supply of dollars does not change. D) supply of dollars increases as the exchange rate increases and the quantity of dollars supplied does not change. E) both the quantity of dollars supplied and the supply of dollars increases as the exchange rate increases.
A clear conclusion from offshoring debates and analyses is that:
a. If offshoring isn't stopped, some nations are likely to go bankrupt. b. Offshoring should be evaluated on a net basis, which means by the difference between the effects of onshoring and offshoring. c. Tariffs and quotas are an ideal means of protecting nations from offshoring's ill effects. d. offshoring always decreases GDP in the nation from which it takes place. e. All of the above are clear conclusions from these debates and analyses.
Both monopolistic competition and oligopoly are market structures
a. that fail to achieve the total surplus achieved by perfect competition. b. that feature only a few firms in each market. c. to which the concept of Nash equilibrium is frequently applied by economists. d. in which firms earn zero economic profit in the long run.
Suppose that a product benefits from a successful advertising campaign. The result is that:
A. the demand for the product increases. B. the demand for the product decreases. C. the supply of the product increases. D. the supply of the product decreases.