Fiscal policy analysis indicates that large tax increases during a severe recession will result in
a. an increase in the incentive to earn and the maintenance of a balanced federal budget.
b. higher tax revenues and an expansion in government spending.
c. smaller budget deficits, which will speed an economic recovery.
d. a reduction in aggregate demand and a worsening of the recession.
D
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Which of the following defines monopoly?
A) Sherman Act B) Clayton Act C) Federal Trade Commission Act D) none of the above
As an individual moves northwest along an indifference curve substituting more and more Y for X, his or her MRS of X for Y
a. increases. b. decreases. c. stays the same. d. changes in a way that cannot be determined.
A survey of income by county revealed that four of the five wealthiest counties were located in the suburbs surrounding Washington, D.C. Why?
Hotelling's model has been used to describe differentiation in the political "market." Suppose that 100 voters are evenly distributed between the extreme left and the extreme right on the political spectrum, and that all voters vote, and they always vote for the candidate closest to them on this spectrum. The numbers on this spectrum represent the number of voters lying to the left of the number. So, at the midpoint, fifty voters lie to the left and fifty to the right.
Suppose Candidate X is running against Candidate Y. If Candidate Z enters the race:
A. most of the voters who were going to vote for Y will now vote for Z. B. approximately half of the voters who were going to vote for X will now vote for Z. C. X will win because Y and Z will be competing for the same voters. D. all of the voters who were going to vote for Y will now vote for Z.