The effect of an increase in the price level on the aggregate-demand curve is represented by a
a. shift to the right of the aggregate-demand curve.
b. shift to the left of the aggregate-demand curve.
c. movement to the left along a given aggregate-demand curve.
d. movement to the right along a given aggregate-demand curve.
c
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Nigeria would be classified by the International Monetary Fund as
A) a resource-based economy. B) an emerging market economy. C) a transition economy. D) a developing economy. E) an advanced economy.
Why can't private individuals always internalize an externality without the help of government?
a. Legal restrictions prevent side payments between individuals. b. Transactions costs may be too high. c. Side payments between individuals are inefficient. d. Side payments between individuals are insufficient.
The free-rider problem
a. forces the supply of a public good to exceed its demand. b. results in common resources becoming club goods. c. explains why many local governments supply public goods. d. results in public goods becoming private goods.
A budget surplus is the:
A. amount of net revenue a government brings in beyond what it spends. B. amount of money a government spends beyond the net revenue it brings in. C. total amount of money that a government owes. D. total amount of money that a government receives from a tax increase.