Under the Classical assumptions, an increase in government spending causes
A) income to rise.
B) income to fall.
C) interest rates to rise.
D) interest rates to fall.
C
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The labor force consists of
A) the number of people who unemployed and who are actively seeking work. B) the number of people who are employed. C) the number of people who are employed minus the number of the people who are unemployed. D) all people in the population aged 16 and over who are not in jail, a hospital, or an institution or in the U.S. Armed Forces. E) the number of people in the working-age population who are employed or unemployed.
McDonald's can offset the decline in demand by influencing the different variables that affected the demand function for their products
Indicate whether the statement is true or false
Which of the following might be a way that an automobile driver's pollution costs could be internalized?
A) The driver could purchase abatement equipment for her car. B) The state could eliminate the gas tax. C) The state could pay a gas subsidy for everyone who drives. D) The state could allow her to drive in the HOV lane.
A firm in a perfectly competitive market has no control over price because
A. every firm's product is a perfect substitute for every other firm's product. B. there is free entry and exit from the industry. C. the market demand for products produced in perfectly competitive industries is perfectly elastic. D. the government imposes price ceilings on the products produced in perfectly competitive industries.