A drop in consumption or investment spending caused by increased government spending is referred to as:
a. the multiplier effect.
b. an expansionary gap.
c. Ricardian equivalence.
d. the paradox of thrift.
e. crowding out.
e
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A firm's demand curve for labor is equal to the
A) total revenue product. B) marginal revenue product. C) marginal factor cost. D) marginal wage.
According to marginal analysis, you should spend more time studying economics if the extra benefit from an additional hour of study:
a. is positive. b. outweighs the extra cost. c. exceeds the benefits of the previous hour of study. d. will raise your exam score.
A general rule is that an economy is experiencing a recession when
A. real GDP declines for at least three months. B. real GDP declines for at least nine months. C. nominal GDP declines for at least nine months. D. real GDP declines for at least six months.
The case against advertising includes the assertion that advertising
A. keeps firms from spending huge sums of money to create artificial differences among goods. B. ensures high quality and efficient production. C. provides consumers with valuable information about product availability, quality, and price. D. decreases competition by increasing barriers to entry of new firms into an industry.