During normal times
A) fiscal policy is very effective because it the effects of fiscal policy will swamp automatic stabilizers and time lags can be.
B) fiscal policy can immediately correct problems in the economy.
C) the Ricardian equivalence theorem makes fiscal policy very effective.
D) fiscal policy is not effective because of the recognition time lag.
Ans: D) fiscal policy is not effective because of the recognition time lag.
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Robinson Crusoe divides his time between catching fish and gathering fruit. Part of his production possibilities frontier is given in the above table. Mr. Crusoe, while lonesome, is efficient and always stays on his PPF. Mr
Crusoe is consuming 20 pounds of fish. Then he decides to slowly become a vegetarian and decrease his consumption of fish to 9 pounds. This decision means that Mr. Crusoe will A) incur an opportunity cost of 9 pounds of fruit. B) incur an opportunity cost of 99 pounds of fruit. C) be able to enjoy a gain of 9 pounds of fruit. D) incur an opportunity cost of 20 pounds of fish. E) incur an opportunity cost of 9 pounds of fish.
The type of firm that is most numerous is the
A) proprietorship. B) corporation. C) partnership. D) multinational.
Refer to Table 2-14. What is Scotland's opportunity cost of producing one motorcycle?
A) 0.25 guitar B) 4 guitars C) 12 guitars D) 16 guitars
See the information in Scenario 4.4. Does the demand curve for Rock and Roll Trivia slope downward?
A) Yes it does. B) No it does not. C) More information is needed to answer this question.