Most economists agree that fiscal policy:
A. should not be used to eliminate economic fluctuations, no matter how large or small.
B. cannot be used to fine tune the economy.
C. can be used to fine tune the economy.
D. can be used to eliminate most if not all economic fluctuations.
Answer: B
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In the small country of Talisman, the liquor industry is monopolized by a single producer Best Drinks Inc Best Drinks charges high end customers like 5-star hotels a much higher price than it charges local pubs. Identify the correct statement from the following
a. Best Drinks is aware of the variations in the valuation of its products by different consumer segments. b. Best Drinks minimizes cost by charging different consumers different prices. c. Charging different prices for different consumers increases consumer surplus. d. Best Drinks charges different prices because its sole objective is sales maximization.
Which of the following could cause the demand curve for tickets to Disney World to shift to the right?
a. A hurricane is predicted to hit Orlando next week. b. A new app can predict wait times on rides and reduce wait by 90%. c. Consumer incomes decreased during the last quarter due to new tax increases. d. Universal Studios lowered the price of their one day passes to Harry Potter Land.
In determining whether a further investment in education for an individual is worth the costs, an economist would look at whether the sum of the
A. annual education costs is exceeded by the sum of the increases in income that are attributable to the increased education. B. present value of the annual education costs is exceeded by the sum of the present value of the annual income to the person. C. annual education costs is exceeded by the sum of annual income to the person. D. present value of the annual education costs is exceeded by the sum of the present value of the increases in income that are attributable to the increased education.
Two countries with differing comparative advantages may engage in trade because
A. They will be able to consume more goods in total due to specialization and trade. B. They will be able to produce and consume goods on their production possibilities curves. C. They will achieve an absolute advantage with one another. D. They are required to because they are part of the World Trade Organization.