Refer to Table 15-4. What is the economically efficient output level?
A) 5 units B) 6 units C) 7 units D) 8 units
A
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Answer the following statement(s) true (T) or false (F)
1. Each user of a common property imposes a negative externality on its other users. 2. The producer of a public good creates a positive externality, so that such goods tend to be overproduced. 3. The tragedy of the commons is a situation where too much of an input is used by individuals, collectively making each individual worse off. 4. When people have identical tastes, an increase in the demand for a common property's use will increase the social gain it creates. 5. People use a common property up to the point where the marginal cost of using it equals the social marginal benefit received from it.
The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output. B. government policy. C. decreasing inflation only. D. increasing or decreasing inflation.
It is true that __________ changes in velocity cause __________ changes in real GDP
A) small; no B) large; no C) small; large D) large; small
Refer to the table. A decline in the international value of the dollar would:
Answer the question on the basis of the following table for a particular country in which C is
consumption expenditures, I g is gross investment expenditures, G is government expenditures,
X is exports, and M is imports. All figures are in billions of dollars. Each question is
independent of other question using the same table, unless otherwise stated.
A. increase the values in columns (5) and (6) and reduce aggregate demand.
B. decrease the values in columns (5) and (6) and increase aggregate demand.
C. decrease the values in column (5), increase the values in column (6), and reduce
aggregate demand.
D. increase the values in column (5), decrease the values in column (6), and increase
aggregate demand.