In a market economy, the goods produced go to those who(m):
a. have sufficient income and are willing to pay the price asked for those goods.
b. the government views as best suited for consumption
c. business firms choose to favor.
d. desire the goods the least.
a
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The demand for science fiction novels is elastic. When prices decrease from $10 to $6.50 per novel, total revenue will
a. not change. b. decrease. c. increase. d. either increase or stay the same.
If you hear that unemployment increased by 2 percentage points to 4 %in the past year, while the labor force participation rate and the population remained constant, it means:
A. twice as many people are without work than was the case a year ago. B. unemployment doubled in the past year. C. there was a 100 percent increase in unemployment. D. All of these are true.
If external benefits occur when a good is consumed, then the government should:
a) Enforce antitrust laws against producers of the good. b) Make transfer payments to those who incur the externalities. c) Tax the producers of the good. d) Subsidize the consumption or production of the good.
If the cyclically adjusted surplus as a percentage of GDP is zero one year and 2 percent of GDP the next year, it can be concluded that:
A. the federal government is lending money. B. fiscal policy is contractionary. C. fiscal policy is expansionary. D. the federal government is borrowing money.