Which of the following would cause aggregate demand to decrease?
A. Businesses and households believe that the economy is headed for good times, so they begin to feel increased security about their jobs.
B. A drop in the foreign exchange value of the dollar
C. The Fed increases the amount of money in circulation.
D. The government increases taxes on both business and personal income.
Answer: D
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A solution concept for a game is
a. a measurement of the game's complexity. b. a way of determining whether the first or second player has an advantage. c. a normative judgment of the desirability of the game's outcome. d. a rule for predicting the game's outcome when it is actually played.
When the government imposes a tariff on imported goods, it _____________ prices for domestic consumers, ________________ consumers' surplus and _________________ the producers' surplus for domestic producers.
A. raises; lowers; raises B. lowers; raises; raises C. lowers; raises; lowers D. raises; lowers; lowers E. none of the above
Which characteristics best describe oligopolies?
a. low fixed costs b. mutual interdependence c. very large firms d. identical pricing e. many firms
Suppose you know that at the current level of production average total cost equals marginal cost, then you know that it is also true that:
A. fixed costs are zero. B. average fixed costs are increasing. C. average total cost will decrease if production is increased. D. average total cost is minimized at the current level of output.