The economy is initially at point 1. Which of the following events would cause a shift that would help offset the crowding-out effect? An increase in:
Refer to the above graph.
A. Interest rates caused by a change in Federal Reserve policy
B. Profit expectations resulting from an increase in government spending
C. Business taxes levied by government to pay for new government programs
D. The degree of excess capacity in business stemming from a recession
B. Profit expectations resulting from an increase in government spending
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Which of the following is true? a. People specialize by concentrating their energies on the activity to which they are best suited, because they incur lower opportunity costs as a result. b. One advantage of specialization is that workers acquire greater skill from repetition
c. If a person, a region, or a country can produce a good or service at a lower opportunity cost than others, we say that they have a comparative advantage in the production of that good or service. d. All of the above are true.
The marginal revenue product of an input is the marginal physical product times the price per unit of output under perfect competition
a. True b. False Indicate whether the statement is true or false
____ is a doctrine that holds that exports are good for a country, whereas imports are harmful
a. Supply-side economics b. Mercantilism c. Free trade d. Monetarism
Suppose that Christine owns her own CPA firm. She uses only two inputs in her business: her hours worked (labor) and a computer (capital). In the short run, Christine most likely considers
a. both labor and capital to be fixed. b. both labor and capital to be variable. c. capital to be variable and labor to be fixed. d. labor to be variable and capital to be fixed.