If the marginal benefit of additional spending on a public health measure is greater than its marginal cost, then total economic surplus
A. will increase if the government increases spending on the health measure.
B. is equal to zero.
C. will decrease if the government increases spending on the health measure.
D. has been maximized.
Answer: A
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When there is a decrease in demand,
A. the demand curve shifts to the right of the original demand curve. B. the demand curve rotates clockwise. C. the demand curve shifts to the left of the original demand curve. D. the demand curve rotates counterclockwise. E. a lower price has increased the amount of the good that consumers will buy.
Lower personal income taxes
A) decrease disposable income. B) decrease aggregate demand. C) increase transfer payments. D) increase aggregate demand.
If the nominal interest rate is 2.9 percent and the rate of inflation is 0.6 percent in a given year, then what is the corresponding real rate of return?
A) 3.5 percent B) 2.3 percent C) -3.5 percent D) None of the above.
International trade was not important to the industrializing U.S. since it was relatively rich in raw materials and land
Indicate whether the statement is true or false