Fiscal policy is the use of government purchases and taxes to alter RGDP and the price level
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
What is the macroeconomic consequence if firms accumulate large amounts of unplanned inventory at the beginning of a recession?
What will be an ideal response?
Because monopolists are protected by high barriers to entry, they:
a. may be able to earn long-run economic profits. b. will not minimize the per-unit cost of producing their output. c. will price their product at the highest possible price. d. seek economic profit; however, they are not able to earn it in the long run.
If a contestable market has only one seller, which of the following will keep the seller from producing inefficiently and charging a price that generates long-run economic profits?
a. government regulations b. low costs of entry into and exit from the market c. substantial economies of scale that provide a competitive advantage to large firms in such markets d. the threat of a government takeover of the firms in these markets
David tunes pianos in his spare time for extra income. Buyers of his service are willing to pay $135 per tuning. One particular week, David is willing to tune the first piano for $115, the second piano for $125, the third piano for $140, and the fourth piano for $175 . Assume David is rational in deciding how many pianos to tune. His producer surplus is
a. $-15. b. $20. c. $30. d. $75.