In the long run, most economists agree that a permanent increase in government spending leads to ________ crowding out of private spending
A) no
B) partial
C) complete
D) more than complete
Answer: C
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In the loanable funds market, which of the following is an example of investment demand?
A) Mark buying rare gold coins B) Scott purchasing a rookie-year baseball card for last year's World Series MVP C) Mary buying stocks for her retirement portfolio D) Brian, owner of Bryan Games, purchasing computers to enhance the production of games E) George purchasing United States savings bonds for his son's college fund
A true and unambiguous burden on future generations will be created whenever government deficit spending
A) increases the ratio of government expenditure to GDP. B) pays for goods that yield no future benefits. C) is used as part of a countercyclical fiscal expansion. D) pays for capital expenditures.
Which of the following will decrease the demand for fast-food burger workers' labor?
a. More people start working two jobs and eat more fast food. b. The price of pizza, a substitute for burgers, decreases. c. A new technology allows burgers to be produced faster. d. Workers get additional training that increases productivity. e. Workers form a union and get higher wages.
If the price elasticity of demand for chicken is 2, then a 20% decrease in the price of chicken will lead to a:
A. 10% decrease in the quantity demanded of chicken. B. 40% decrease in the quantity demanded of chicken. C. 40% increase in the quantity demanded of chicken. D. 10% increase in the quantity demanded of chicken.