Combinations to the left of the budget line are:
A. Unavailable and inefficient
B. Unattainable and efficient
C. Attainable and inefficient
D. Attainable and efficient
Answer: C
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"Crowding-out" occurs in the IS-LM model as rising government spending requires a ________ in the interest rate in order to ________ the demand for money at the new equilibrium, thus ________ planned private investment
A) rise, keep constant, lowering B) rise, raise, lowering C) rise, lower, raising D) fall, keep constant, raising E) fall, raise, lowering
After paying admission and entering King's Island Amusement Park near Cincinnati, Alan Fujiwara sees a list of waiting times for each attraction and ride. At this point, Alan's marginal dollar cost is
a. zero and so are the marginal time costs of each attraction or ride b. zero, so he will base his next move on the marginal time costs of each attraction or ride c. greater than zero based on the admission price, so he will base his next move on the marginal time costs of each attraction or ride d. greater than zero based on the admission price, so he will ignore the marginal time costs of each attraction or ride e. less than zero and so are the marginal time costs of each attraction or ride
In a market where the price is restricted by price floors or price ceilings,
a. all sellers will be able to sell everything they produce. b. surpluses and shortages will exist. c. all buyers will get what they want. d. disequilibrium will automatically correct itself. e. surpluses and shortages will put pressure on the price to move to its equilibrium.
A default rule:
A. is a consequence that users of commitment devices agree to if they fail to follow through with their commitment. B. is a defined limit used to mark when someone is decidedly not making a good decision. C. defines what will automatically occur if someone fails to make an active decision otherwise. D. is the defined strength of a given commitment needed to get an individual to follow through with the commitment.