Which of the following situations is used as a justification for government?
A. negative externalities
B. removal from the prisoner's dilemma
C. nonexcludable goods
D. positive externalities
E. all of the above
Answer: E
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In a constant-cost industry, input prices remain constant as:
a. the supply of inputs fluctuates. b. firms encounter diseconomies of scale. c. workers become more experienced. d. firms enter and exit the industry.
Which of the following economic theories favors an active role for government in promoting low inflation and economic growth?
a. New Keynesian b. Monetarists c. New classical economists d. Classical economists e. Marxists
If a perfectly competitive market is in equilibrium and then market demand increases, which of the following would happen?
a. producer surplus would definitely increase and consumer surplus may increase or decrease b. producer surplus would definitely decrease and consumer surplus may increase or decrease c. consumer surplus would definitely decrease and producer surplus may increase or decrease d. consumer surplus would definitely increase and producer surplus may increase or decrease e. producer and consumer surplus would remain unchanged
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4Refer to Figure 2.4. The economy moves from Point E to Point B. This could be explained by
A. a change in society's preferences for hybrid cars versus motorcycles. B. an increase in economic growth. C. an increase in unemployment. D. a reduction in unemployment.