If you were a Keynesian economist, what policies would you likely suggest to respond to a recession?
a. moderate tax cuts and increases in government spending
b. cuts in government spending and moderate tax increases
c. tax refunds and deep cuts to social programs
d. government investments in defense and anti-inflation measures
Ans: a. moderate tax cuts and increases in government spending
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Marginal revenue is less than price for price searchers
A) because they are monopolists. B) because they necessarily have some costs. C) if they enjoy grants of legal privilege. D) when they cannot charge all customers the maximum they are willing to pay for each unit purchased. E) when they have the ability to practice price discrimination.
Which of the following questions would a macroeconomist most likely try to answer?
A. What stage of the business cycle is our economy currently in? B. Why do Broadway musicals and airlines have different price discrimination strategies? C. How much would marijuana consumption change if the market became legal? D. Should the 5-Hour Energy firm increase its distribution from national to international?
A firm in the United Kingdom hires a firm in the U.S. to train its managers. By itself this transaction
a. increases U.S. imports and decreases U.S. net exports. b. increases U.S. imports and increases U.S. net exports. c. increases U.S. exports and decreases U.S. net exports. d. increases U.S. exports and increases U.S. net exports.
If the long-run supply curve of a purely competitive industry slopes upward, this implies that the prices of relevant resources:
A. will fall as the industry expands. B. are constant as the industry expands. C. rise as the industry contracts. D. rise as the industry expands.