Suppose the economy had been producing at potential output but is now experiencing a recession. Which of the following are discretionary fiscal policies that could bring the economy closer to potential output? Check all that apply.
A. Raising interest rates
B. A tax increase
C. Additional spending on national park facilities
D. A tax cut
Answer:
C. Additional spending on national park facilities
D. A tax cut
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Use the following table to answer this question, which provides information on the production of a product that requires one variable input.InputTotal Product0015220332442550655758858956Marginal product is zero when the total product is
A. 58. B. 5. C. 0. D. 56.
Which of the following describes differentiated products? a. They have close substitutes in the market
b. They cater to the needs of only the lower-income section of the population. c. The prices and quantities of such products are set by the government. d. The supply of such products is independent of the market price.
In the absence of laws requiring individuals to purchase insurance, insurance is most attractive to:
A. those with lowest likelihood of filing a claim. B. the poor. C. the wealthy. D. those with the highest likelihood of filing a claim.
Compare two economies: a barter economy versus an economy that uses money. In order to exchange goods and services:
A. the money economy requires that sellers have more information about buyers' wants. B. transactions are likely to be smoother in the barter economy because goods and services are exchanged directly. C. a double coincidence of wants is necessary in the barter economy. D. a double coincidence of wants is more likely to occur in the barter economy.