A shift in tastes toward American goods ________ net exports in the U.S. and causes the quantity of aggregate output demanded to ________ in the U.S., everything else held constant
A) decreases; rise
B) decreases; fall
C) increases; rise
D) increases; fall
C
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According to economic theory, the democratic political processes tend to produce
A) unstable aggregate demand policies with a bias toward expansion. B) unstable aggregate demand policies with a bias toward contraction. C) stable aggregate demand policies, but only if economists are elected to office. D) stable aggregate demand policies that are in the best interests of the nation as a whole. E) economic policies that harm everybody.
As more people imported cars from abroad, service facilities became widely available. This increased the value of imported cars to those who owned one. This is an example of a(n) ________
A) pecuniary externality B) network externality C) moral hazard D) adverse selection
Refer to Table 17-3. What is the amount of profit added as a result of hiring the fourth worker?
A) $7,200 B) $1,200 C) $800 D) $400
The Laffer curve illustrates the concept that
a. an increase in marginal tax rates will always cause tax revenues to increase. b. an increase in marginal tax rates will always cause tax revenues to decrease. c. when marginal tax rates are quite high, a decrease in the tax rate may cause tax revenues to increase. d. when marginal taxes are quite low, an increase in the tax rate will probably cause tax revenues to decline.