When government borrowing decreases private investment by raising the market interest rate, this is known as
A. the Director's Law.
B. crowding out.
C. positive economics.
D. the Ramsey Rule.
B. crowding out.
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Describe how, according to some economists, the Fed's actions and the"global savings glut" both contributed to rising U.S. housing prices in the early 2000s
The phenomenon whereby labor decreases in response to a decrease in the wage rate is called
a. the substitution effect. b. the scale effect. c. derived demand from a change in wage. d. the factor regressivity of labor.
Which of the following is true about monopolistic competition but false about perfect competition?
A) There is a large number of independently acting sellers. B) There are no barriers to entry. C) Firms can earn an economic profit in the short run. D) Firms compete on their product's price as well as its quality and marketing. E) Firms cannot earn an economic profit in the long run.
If the marginal utility Ida Mae receives from eating chicken wings is negative then
A) her total utility from eating chicken wings has fallen. B) Ida Mae definitely does not like chicken wings. C) her total utility has risen, but by less from the last chicken wing than from the next to last chicken wing. D) her total utility from eating chicken wings is negative as well.