When we speak of expansionary fiscal policy, we are talking about policymakers __________ government spending, or __________ taxes, or both
A) decreasing; decreasing
B) increasing; increasing
C) increasing; decreasing
D) decreasing; increasing
C
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Would an economist consider clean air a scarce resource? Explain
What will be an ideal response?
A perfectly inelastic demand implies that buyers
a. decrease their purchases when the price rises. b. purchase the same amount as before when the price rises or falls. c. increase their purchases only slightly when the price falls. d. respond substantially to an increase in price.
Which of the following best describes the consumer optimum?
A. MUa/Pa = TUb/Pb B. MUa/Pa = MUb/Pb = . . . = MUz/Pz. C. change in TU/change in P = MU D. MUa/TUa = Pa
When MR < MC for a firm, the firm should
A. increase output, unless P < AVC. B. stay at the same level of output. C. reduce its level of output. D. stop producing.