When a surplus exists for a product,
A. Producers increase supply.
B. Producers reduce the level of output and reduce price.
C. Consumers increase demand.
D. Government purchases decrease.
Answer: B
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In the personal computer market, some large manufacturers are able to buy computer components (e.g., disk drives, flat-screen monitors, and memory chips) and software at lower prices than smaller firms in the market
This outcome indicates that the large firms enjoy some degree of ________ in this market. A) monopoly power B) oligopoly power C) oligopsony power D) monopsony power
The "fiscal multiplier" is the ripple effect of subsequent:
A. increases in spending following an initial increase in government spending. B. increase rate changes following a change to the federal funds rate. C. increases in lending following an initial increase in bank reserves. D. private-sector layoffs following an initial layoff in the public sector.
Production is efficient when
A. the economy cannot produce more of one good without giving up the production of another good. B. technological change occurs. C. it generates a point beyond the production possibility curve. D. the maximum amounts of the most important good are produced.
The more elastic the supply curve, _____
a. the greater the tax evasion b. the more suppliers have to bear the tax burden c. the more suppliers can shift the tax burden to demanders d. the more demanders shift the supply curve