If the federal government tries to make fiscal policy sustainable by increasing taxes on wages, the opportunity cost of leisure will ________ and will result in ________ potential GDP
A) increase; lower
B) decrease; higher
C) decrease; lower
D) increase; higher
C
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If the demand and supply curves for a commodity both shift to the left by the same amount, then in comparison to the initial equilibrium, the new equilibrium will be characterized by:
A) a higher price quantity. B) the same price and a higher quantity. C) the same price and a lower quantity. D) a lower price and a higher quantity.
Economists do not think it is possible to compare the relative utility that two people get from consuming an additional unit of a particular good
Indicate whether the statement is true or false
Suppose that Figure 7.5 shows an industry's market demand, its marginal revenue, and the production costs of a representative firm. If the industry was perfectly competitive, it will produce a quantity of ________ and charge a price of ________.
A. 35; $65 B. 50; $50 C. 70; $30 D. There is not sufficient information.
Describe the characteristics of private capital flows to DVC.
What will be an ideal response?