Producers are willing to offer greater quantities for sale at higher prices because
a. they have the incentive to pay the increasing opportunity cost of resources necessary to attract them from alternative uses
b. they will decrease their profits by expanding production at higher prices
c. the government orders them to do so
d. lower prices attract new firms, which have higher costs of production
e. they hire superior quality, higher-priced resources as production expands
A
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According to economist Robert Gordon, major innovations in the United States have been concentrated in ________ waves of growth
A) two B) three C) four D) five
Crowding out refers to a(n)
a. decrease in the amount of goods produced after too many goods have crowded onto the market b. business tactic used to steal a competitor's customers c. increase in one sector's spending caused by an increase in another sector's spending d. decrease in the price level after too many goods have crowded onto the market e. decline in one sector's spending caused by an increase in another sector's spending
Policy makers who believe that the costs of inflation are very high will tend to favor which of the following during an inflationary gap?
a. moderate fiscal stimulus, no monetary stimulus b. fiscal and monetary tightness c. moderate monetary stimulus, fiscal tightness d. strong fiscal and monetary stimulus
Market pricing as a kind of automatic signalling system that responds to changes in relative scarcities and rapidly redirects economic activity is part of
What will be an ideal response?