Once an equilibrium is achieved, it can persist indefinitely because
A) shocks that shift the demand curve or the supply curve cannot occur.
B) shocks to the demand curve are always exactly offset by shocks to the supply curve.
C) the government never intervenes in markets at equilibrium.
D) in the absence of supply/demand shocks no one applies pressure to change the price.
D
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What two conditions are met when a consumer is maximizing utility?
What will be an ideal response?
Government consumption expenditures equal
A) government outlays minus transfer payments. B) government outlays minus net interest payments. C) government purchases minus government investment. D) the government primary deficit plus net interest payments.
The major distinction between the experiments and quasi-experiments chapter and earlier chapters is the
A) frequent use of binary variables. B) type of data analyzed and the special opportunities and challenges posed when analyzing experiments and quasi-experiments. C) superiority of TSLS over OLS. D) use of heteroskedasticity-robust standard errors.
The 1992 plan of the European Union calls for
a. the complete mobility of economic resources across EU borders. b. establishing the British pound as the common currency. c. a central banking system in Zurich. d. a federal tax system similar to that of the United States.