Economist A says all of the following: The economy needs expansionary fiscal policy to remove it from a recessionary gap. Government should either raise its _____________ or cut ___________________. I believe the government spending multiplier is ____________ than the tax multiplier, so I favor _____________________
A) spending; taxes; larger; cutting taxes
B) taxes; spending; larger; raising; spending
C) spending; taxes; larger; raising; spending
D) b or c
E) a or c
C
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In the long run, a monopolistically competitive firm's price equals
A) its average total cost and its marginal cost. B) its average total cost but not its marginal cost. C) its marginal cost but not its average total cost. D) neither marginal cost nor its average total cost.
A consumer's total transportation cost includes all of the following except which one?
A) the value of the consumer's time deciding which store to travel to B) the cost of a subway ticket to the store C) the value of the consumer's time spent in the store D) the value of the consumer's time spent getting to and from the store
A labor market is divided into two segments. All workers have the same qualifications and find jobs in either segment equally attractive. Initially, both segments are in competitive equilibrium. Then the development of worker prejudice that reduces the hiring of minorities in one segment can lead to a
a. permanent increase in labor supply in the discriminating segment b. permanent increase in labor supply in the nondiscriminating sector c. temporary change in the composition of labor in both segments which will revert back to an equal distribution of workers eventually d. temporary increase in labor supply in both segments e. temporary change in wage rates in both segments
Government's role of protecting property rights is considered:
A) enforcing a legal system. B) providing certain goods and services. C) redistributing income. D) maintaining the money supply.