In a closed economy
A) I = Y - C - G.
B) I = Y + C - G.
C) I = Y - C + G.
D) I = Y + C + G.
Answer: A
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If the economy is producing at point B, the opportunity cost of gaining 12 units of consumer goods is _______ units of capital goods.
Assume the figure applies to a pure monopolist and that MC is the same for both graphs. If this firm is able to price discriminate between children and adults, its profit-maximizing level of output will be:
A. Q 1A + Q 1C .
B. Q 1C + Q 2 .
C. Q 1A + Q 2 .
D. Q 1A + Q 1C + Q 2 .
The proliferation of the horse in the 17th century caused Great Plains Indians to:
a. increase their reliance on agricultural work. b. engage in less tribal warfare. c. use smaller and more independent hunting groups. d. kill fewer bison, but make more intensive use of the meat on the carcass.
Crowding out results in a decrease in
A) transfer payments. B) defense spending. C) private spending. D) government spending.