Underproduction of good ________ create a deadweight loss and overproduction of a good ________ create a deadweight loss
A) will; will
B) will; will not
C) will not; will
D) will not; will not
A
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Suppose there is a decline in the demand for the product labor is producing. Furthermore, the price of capital, which is complementary to labor, increases. Thus, the demand for labor
A. will decrease. B. will increase. C. may either increase or decrease. D. will not change.
A consumer has maximized her total utility (as measured in money) when, at the quantity of each good chosen
A. marginal utility is negative. B. marginal utility divided by price is equal to 1. C. marginal utility is greater than price. D. marginal utility is equal to total utility.
Automatic stabilizers are government programs that:
a. exaggerate the ups and downs in aggregate demand without legislative action. b. bring expenditures and revenues automatically into balance without legislative action. c. shift the budget toward a deficit when the economy slows but shift it toward a surplus during an expansion. d. increase tax collections automatically during a recession.
A simultaneous rightward shift in SRAS and leftward shift in AD may come from the dollar _______________ in the aftermath of a ____________________ in United States real interest rates
A) depreciating; rise B) depreciating; fall C) appreciating; rise D) appreciating; fall