If the economy is in a recession, it means that:
A. the economy is not in long-run equilibrium.
B. total output is less than potential output.
C. the short-run equilibrium is to the left of the long-run aggregate supply curve.
D. All of these are true.
D. All of these are true.
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A performance-based standard
a. specifies a pollution limit and lets polluters select the technology to achieve that limit b. is less flexible than a technology-based standard c. designates the equipment or control method to be used for pollution abatement d. none of the above
Which of the following policies encourages economic growth?
A) increased taxes on income and business profits B) limiting the years people spend in education so that they can start productive work C) reduction of government support of higher education D) creation of tax free savings accounts E) high tariffs and strict import quotas on foreign-made products
A warranty is most valuable as a signaling device when
A) the buyer has much more information about the product than the seller does. B) the seller has much more information about the product than the buyer does. C) the buyer has much more information about his or her own preferences than the seller does. D) neither the buyer nor the seller has good information about the product. E) neither the buyer nor the seller has good information about consumer preferences.
Exhibit 9-2 Demand and cost information for a monopoly Q P TC 0 40 10 1 30 15 2 20 25 3 10 40 4 0 60 The marginal revenue of the second unit of output in Exhibit 9-2 is:
A. 10. B. 20. C. 30. D. 40.