Sketch an Edgeworth production box where the demand for labor is greater than its supply and the supply of capital is greater than its demand.
What will be an ideal response?
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Most of the goods produced in an economy are ________
A) private goods B) public goods C) club goods D) inferior goods
In which of the following situations is representative democracy most likely to lead to the adoption of an inefficient government program?
a. The program provides substantial benefits to a small interest group, and the costs are widespread among voters. b. Both the benefits and costs of the program are widespread among voters. c. The program is financed by a user charge that makes the individuals who benefit from the program pay for its cost. d. The program provides widespread benefits to all voters and imposes a significant cost on a small interest group.
When government spending is equal to the tax revenues during a specific time period, this is known as a
A. government budget deficit. B. government budget surplus. C. balanced budget. D. public debt.
Explain how each of the following events would affect the short-run aggregate supply curve
a. A decrease in the price level b. A decrease in what the price level is expected to be in the future c. A price level that is currently lower than expected d. An unexpected decrease in the price of an important raw material e. A decrease in the labor force