The government buys new weapons systems. The manufacturers of weapons pay their employees. The employees spend this money on goods and services. The firms from which the employees buy the goods and services pay their employees. This sequence of events illustrates
a. the accelerator effect.
b. the multiplier effect.
c. the chain effect.
d. the bandwagon effect.
b
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Which of the following is not one of the three sources of technological change?
A) better machinery and equipment B) better means of organizing and managing production C) additional amounts of existing capital D) increases in human capital
The optimal amount of air pollution is
A) found by equating the marginal benefits from reducing pollution by one more unit with the marginal costs of reducing pollution by an additional unit. B) found by equating the total benefits from reducing pollution by one more unit with the total costs of reducing pollution by an additional unit. C) found by setting the marginal benefits from reducing pollution by one more unit equal to zero. D) a meaningless concept since we cannot monetize the environment.
Which of the following will decrease the amount of a good that is traded in the market?
a. price floors and price ceilings b. excise taxes, price floors, and subsidies c. excise taxes d. subsidies e. price floors, price ceilings, and excise taxes
If the labor force grows at a faster rate than the number employed, the
What will be an ideal response?