Public television periodically runs pledge drives to raise money. Only a small percentage of the people who benefit from public television are willing to pay. This low percentage of people willing to contribute illustrates a difficulty with:
A. tax incentive policies.
B. government regulation.
C. voluntary programs.
D. market incentive programs.
Answer: C
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The effect of a recession on a company like Whirlpool Corporation is such that
A) the decline in sales is more short-lived as compared to firms that do not produce durable goods. B) profits fall less sharply as compared to firms that do not produce durable goods. C) there is no difference in the impact of the recession on its profits as compared to firms that do not produce durable goods. D) sales decline more sharply for Whirlpool as compared to firms that do not produce durable goods.
Suppose Congress decides to reduce government expenditures by reducing its purchases of weapons systems. Which of the following would you expect to occur as a result of this change? a. The economy will move up and to the left along the short-run Phillips Curve. b. The economy will move down and to the right along the short-run Phillips Curve. c. The short-run Phillips Curve will shift to the
left. d. The short-run Phillips Curve will shift to the right.
What do economists call the sum of a firm’s fixed costs and its variable costs?
a. implicit cost b. total cost c. sunk cost d. marginal cost
You deposit $4,000 in currency in your checking account. The bank holds 20 percent of all deposits as reserves. As a direct result of your deposit, your bank will create
What will be an ideal response?