If there is a deliberate change in taxes and spending, it is called
A) a recessionary gap.
B) an inflationary gap.
C) discretionary fiscal policy.
D) discretionary monetary policy.
C
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The value of resources devoted to rent seeking will
A) at most equal the monopoly's economic profit. B) reduce deadweight loss. C) reduce consumer surplus. D) raise output to an efficient level.
Under monopolistic competition, profits cannot persist because new firms will be attracted to the market
a. True b. False Indicate whether the statement is true or false
Which of the following could be the price elasticity of demand for a good for which an increase in price would increase revenue?
a. 0.3 b. 1 c. 1.8 d. None of the above could be correct.
Choose the letter of the curve in Figure 1.2 that best represents a production possibilities curve for two goods that obey the law of increasing opportunity costs:
A. A. B. B. C. C. D. D.