A person prefers large and small levels of national defense to medium-sized levels of national defense. This person
A. is violating the law of transitivity.
B. has single-peaked preferences.
C. has multiple-peaked preferences.
D. cannot achieve his or her most-preferred outcome.
C. has multiple-peaked preferences.
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The total amount of debt owed by the federal government is represented by the total value of the outstanding
A. U.S. government securities. B. bank loans and deposits. C. Federal Reserve notes. D. stocks and bonds.
A positive spending shock ________ real interest rates and ________ output in the short run, thereby its effect on stock prices is ________
A) raises; lowers; positive B) raises; raises; ambiguous C) lowers; raises; negative D) lowers; raises; positive
The reason externalities distort the allocation of resources is that
a. too few goods are usually produced. b. firms often go out of business because of the externality. c. a firm's private costs do not reflect the social cost of production. d. regulating externalities uses scarce resources.
A firm will tend to select the least costly input combination to produce its output
a. True b. False Indicate whether the statement is true or false