Public companies ________ and private companies ________
A) sell stock in financial markets; also sell stock in financial markets
B) sell stock in financial markets; do not sell stock in financial markets
C) do not sell stock in financial markets; also do not sell stock in financial markets
D) do not sell stock in financial markets; sell stock in financial markets
Answer: B
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The government might engage in expansionary fiscal policy if it wanted to
A) shift the aggregate demand curve to the left. B) reduce the level of unemployment. C) reduce real GDP. D) reduce the price level.
In a diagram, consumer surplus is always represented by the area:
A. above the demand curve. B. between the demand curve and the supply curve. C. between the demand curve and the price. D. below the demand curve.
Which of the following statements is TRUE regarding the textbook used in this course?
A) The textbook presents only economic theory, so no value judgments are involved in the text. B) The textbook does not include normative statements. C) The microeconomic section of the book includes only positive analysis while the macroeconomic section includes normative analysis. D) The selection of topics included in the book involves value judgments as well as economic theory.
An economy in which output has decreased and prices have increased would suggest that there has been a:
A. negative demand side shock. B. negative supply side shock. C. positive demand side shock. D. positive supply side shock.