State and local governments are limited in their ability to respond to recessions because of:
A. Local politics and politicians
B. Their desire to always run budget surpluses
C. The lack of proper economic research and assistance
D. Constitutional and other requirements to balance their budgets
D. Constitutional and other requirements to balance their budgets
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If your real income in base year prices is $50,000, then if the CPI is 170, what is your nominal income?
A) $85,000.00 B) $29,411.76 C) $70,000.00 D) $50,000.00 E) $71,428.57
The long-run supply curve in a constant-cost, perfectly competitive industry is
A) perfectly inelastic. B) upward sloping. C) downward sloping. D) perfectly elastic.
Purchases of foreign assets by domestic firms or households is called a:
A. capital outflow. B. capital inflow. C. trade deficit. D. trade surplus.
Refer to the information provided in Figure 12.4 below to answer the question(s) that follow.
Figure 12.4There are two sectors in the economy, X and Y, and both are in long-run, zero-profit equilibrium at the intersections of S0 and D0.Refer to Figure 12.4. Assume consumer preference changes toward X and away from Y. Ceteris paribus, sector X will likely see ________ and sector Y will likely see ________.
A. no entry or exit of firms; the exit of existing firms B. the entrance of new firms; the exit of existing firms C. the exit of existing firms; the entrance of new firms D. the entrance of new firms; no entry or exit of firms