Given its production possibilities curve, the optimal combination of outputs for a society:
a. is beyond the production possibilities curve
b. is at the midpoint of the production possibilities curve.
c. is inside the production possibilities curve.
d. depends on the preferences of that society.
d
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If President Obama wanted to decrease aggregate demand, which of the following would he tend to favor?
a. An increase in government spending, because it will increase the size of the public sector. b. A decrease in government spending, because it keeps the public sector small. c. An increase in transfer payments, because it has a larger multiplier than tax changes. d. An increase in taxes, because it would not make the public sector smaller.
The net exports adjustments in aggregate demand includes
A. capital inflows minus capital outflows. B. capital outflows minus capital inflows. C. the sum of exports minus imports. D. the sum of imports minus exports.
Collusion occurs when
A) a firm chooses a level of output to maximize its own profit. B) two firms' price and output decisions come into conflict. C) there is an agreement among firms to charge the same price or otherwise not to compete. D) firms refuse to follow their price leaders.
The degree to which a new casino will have an economic impact reflects the potential
A. legislation. B. local substitution. C. addictiveness of gambling. D. positive externalities.