How would a negative real shock be represented in the AS/AD model?
A. As a leftward shift of the long-run aggregate supply curve that reduces growth and increases inflation.
B. As a rightward shift of the long-run aggregate supply curve that reduces growth and increases inflation.
C. As a leftward shift of the long-run aggregate supply curve that increases growth and reduces inflation.
D. As a rightward shift of the long-run aggregate supply curve that increases growth and reduces inflation.
Ans: A. As a leftward shift of the long-run aggregate supply curve that reduces growth and increases inflation.
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Which of the following is an example of an efficiency-equity trade-off faced by economic agents?
A) Concerned about the falling birth rate, the French government has pledged more money for families with three children, in an effort to encourage working women to have more babies. B) All New York City art museums are considering adopting a free-admission policy for local residents one weekend per month. C) According to an article by in the American Journal of Public Health by Edward Kaplan and Michael Merson of Yale University School of Medicine, the federal government's current method of allocating HIV-prevention resources is not cost-effective. Instead of allocating resources to states in proportion to reported AIDS cases, resources should flow first to those activities that prevent more infections per dollar and then to less and less effective combinations of programs and populations until funds are exhausted, even if it means that some populations would be left without any prevention services. D) Some U.S. colleges are actively recruiting foreign students for their technology-based programs.
Which of the following is an example of positive technological change?
A) A firm conducts a new advertising campaign. As a result, the demand for the firm's surf boards increases. B) A firm buys an additional machine that it uses to make surf boards. As a result, the firm is able to increase its weekly production of surf boards. C) A firm offers workers a higher wage to work on weekends and at night. As a result, the firm is able to increase its weekly production of surf boards. D) A firm's workers participate in a training program designed to increase the number of surf boards they can produce per day.
Two taxes that have consumption as a tax base are ____ taxes and _____ taxes
a. income; general sales b. general sales; valued-added c. excise; income d. estate; retail sales
The path of the game in Figure 8.11 will be:
A. Fred chooses a large quantity and Barney stays out. B. Fred chooses a large quantity and Barney enters. C. Fred chooses a small quantity and Barney stays out. D. Fred chooses a small quantity and Barney enters.