In the long run, the crowding-out effect of an increase in government purchases is
a. more complete than in the short run
b. canceled out by increases in infrastructure spending
c. less complete than in the short run
d. canceled out by improved consumer confidence
e. a multiple of the initial change in spending
A
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According to this Application, economist Daron Acemoglu categorizes which of the following as authoritarian institutions?
A) democracies, monarchies, and dictatorships B) monarchies, dictatorships, and tightly controlled oligarchies C) constitutionally limited monarchies and democracies D) tightly controlled oligarchies, democracies, and constitutionally limited monarchies
Each point on a supply curve represents
A) the highest price buyers will pay for the good. B) the lowest price for which a supplier can profitably sell another unit. C) the lowest price buyers will accept per unit of the good. D) the highest price sellers can get for each unit over time.
Which of the following statements is true?
A) Trade-offs do not apply when the consumers purchase a product for which there is excess supply, such as with a stock clearance sale. B) Economics is a social science that studies the trade-offs we are forced to make because resources are unlimited. C) Every individual, no matter how rich or poor, is faced with situations that require trade-offs. D) Any time you have to decide which action to take you are experiencing economic equity.
Loopholes reduce the efficiency of the tax system.
Answer the following statement true (T) or false (F)