In the case of a technology spillover, internalizing a positive externality through a government subsidy will cause the industry's supply curve to
a. shift up by an amount equal to the subsidy.
b. shift down by an amount less than the subsidy.
c. shift down by an amount equal to the subsidy.
d. shift down by an amount greater than the subsidy.
c
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The reason that some people make more money than others is explained mainly by
A. training and education. B. intelligence. C. inborn skills or physical attributes. D. all of the choices/statements are true.
(Appendix) Which of the following production functions exhibits increasing returns to scale?
A. Q = Kl/2L2/3 B. Q = Kl/4Ll/3 C. Q = K/L D. Q = K1/2Ll/2
Figure 10-5
In Figure 10-5, which graph best illustrates the situation of an economy with high unemployment that experiences an increase in investment spending?
a.
(1)
b.
(2)
c.
(3)
d.
(4)
_______ occurs when there is a decreasing average price level
Fill in the blank(s) with the appropriate word(s).