In the Keynesian cross diagram, a decrease in investment spending because companies become more pessimistic about investment profitability causes the aggregate demand function to shift ________ and the equilibrium level of aggregate output to
________, everything else held constant. A) up; rise
B) up; fall
C) down; rise
D) down; fall
D
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There is no relationship between the size of a bureau's budget and the income earned by the bureaucrat in charge of the bureau
a. True b. False
Expenses for room and board
a. are opportunity costs of attending college, because they are subsidized by the government or by the college b. are opportunity costs of attending college since they involve cash expenditures c. are opportunity costs of attending college if you are on scholarship, but not otherwise d. are not usually part of the opportunity cost of attending college, because you would have to live somewhere and eat something even if you didn't attend college e. are not usually part of the opportunity cost of attending college, because they are already included in room and board charges, and we wish to avoid double counting
In a market-oriented economy, most economic decisions about what to produce, how to produce, who will produce, and for whom to produce are made by buyers and sellers
a. True b. False Indicate whether the statement is true or false
The figure below illustrates a tariff. On the graph, Q represents quantity and P represents price.
Figure 17-11
Refer to Figure 17-11. The tariff
a.
decreases producer surplus by the area C and decreases consumer surplus by the area C + D + E + F.
b.
decreases producer surplus by the area C + D and decreases consumer surplus by the area D + E + F.
c.
increases producer surplus by the area C and decreases consumer surplus by the area C + D + E + F.
d.
increases producer surplus by the area B + C and decrease consumer surplus by the area D + E + F.