An increase in the demand for GM automobiles results in:
A. a lower equilibrium price for GM automobiles.
B. an increase in the supply of GM automobiles.
C. an increase in the quantity supplied of GM automobiles.
D. a lower equilibrium quantity of GM automobiles.
Answer: C
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Studies by the U.S. Census Bureau have shown that
A) there is significant income mobility in the U.S. over time. B) families remain below the poverty line for an average of five years. C) income mobility in the U.S. is minimal. D) over half the people below the poverty line never move out of poverty.
To maintain their standard of living, most people rely on
a. government assistance. b. their personal savings. c. their labor earnings. d. rental income.
The balanced budget multiplier is
A) positive because the magnitude of government expenditure multiplier is larger than the magnitude of tax multiplier. B) negative because the magnitude of government expenditure multiplier is larger than the magnitude of the tax multiplier. C) positive because the magnitude of government expenditure multiplier is smaller than the magnitude of tax multiplier. D) equal to zero. E) negative because the magnitude of the tax multiplier is larger than the magnitude of the government expenditure multiplier.
The disagreement between A. C. Pigou and Ronald Coase arose because
A. Pigou argued that the government should ban all externality-generating activities, while Coase thought that taxes and subsidies should be used instead. B. Coase argued that the government should ban all externality-generating activities, while Pigou thought that taxes and subsidies should be used instead. C. Pigou argued that the government should use taxes and subsidies to adjust for externalities, while Coase proposed a market solution to the externality problem. D. Coase argued that the government should use taxes and subsidies to adjust for externalities, while Pigou proposed a market solution to the externality problem.