Discretionary fiscal policy
What will be an ideal response?
Changes in taxes or spending that are the result of deliberate changes in government policy.
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Refer to the scenario above. If Jack has to decide between the number of paintings and sculptures he wants to make in the given time, which of the following will best represent his options?
A) A budget constraint B) Isoquants C) A production possibilities curve D) A supply curve
What is the "medium of exchange" function of money?
A. a common measurement of the relative value of different goods and services B. the ability of money to hold value over time C. the quality of money not to be hoarded because of its commodity value D. the function of money to be widely accepted I exchange for goods and services
If the number of firms in a monopolistically competitive industry increases and the degree of product differentiation diminishes:
A. the likelihood of realizing economic profits in the long run would be enhanced. B. individual firms would now be operating at outputs where their average total costs would be higher. C. the industry would more closely approximate pure competition. D. the likelihood of collusive pricing would increase.
Some policymakers have proposed giving parents of children in poorly performing schools tax dollars to help send their children to private schools. This proposal is an example of
A) vouchers. B) public provision. C) external costs. D) taxes. E) correcting an externality using a government good.