Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential
B. expansionary; higher; potential
C. recessionary; lower; potential
D. recessionary; lower; lower
Answer: C
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Which of the following is a significant barrier to reducing the damage people do to one another's environment?
A) Low negotiation costs among people B) Property rights clearly assigned to specific persons C) Scarcity of public or common property relative to private property D) All of them. E) None of them.
A price increase will always cause a firm’s revenue to fall because they will sell less of the good.
Answer the following statement true (T) or false (F)
An example of an inclusive union is
A. the American Federation of Teachers. B. the International Brotherhood of Teamsters. C. the American Medical Association. D. the Professional Air Traffic Controllers Organization.
Monopolists are said to be allocatively inefficient because:
A. at the profit-maximizing output, the marginal benefit to society from increasing output is greater than the marginal cost to society. B. they produce where MR > MC. C. they produce only the type of product they desire and do not consider the consumer. D. at the profit-maximizing output, price is greater than AVC.