Starting from long-run equilibrium, a war that raises government purchases results in ________ output in the short run and ________ output in the long run.
A. lower; potential
B. higher; potential
C. higher; higher
D. lower; higher
Answer: B
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Which of the following programs provides economic security to the elderly, disabled, widows, and fatherless children in the U.S.?
A) Social security B) Income security C) Federal household assistance program D) Federal income administration program
When Airbnb customers in Malibu start paying hotel taxes, this will have the potential to raise the equilibrium price in this market and, therefore, decrease efficiency. This would have a tendency to
A) decrease producer surplus and decrease deadweight loss. B) decrease consumer surplus and increase deadweight loss. C) maximize consumer surplus and minimize producer surplus. D) increase consumer surplus and increase producer surplus.
Bonds that are sold in a foreign country and are denominated in a currency other than that of the country in which it is sold are known as
A) foreign bonds. B) Eurobonds. C) equity bonds. D) country bonds.
Price will always exceed marginal cost for the profit-maximizing monopolist, or any price-setter firm for that matter
Indicate whether the statement is true or false