Which of the following are contractionary fiscal policies?
A. Decreased taxation and no change in government spending
B. Increased taxation and increased government spending
C. No change in taxation and increased government spending
D. Increased taxation and decreased government spending
Answer: D
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The figure above provides information for a factory that produces chemicals that pollute a waterway. The waterway is used by water skiers. If the waterway is owned by a water ski club and the Coase theorem applies, then the factory will produce ________ tons of chemicals a week.
A) 1 ton B) as many tons as possible C) 3 tons D) 5 tons
The level of aggregate supply in the long run is not affected by
A) changes in technology. B) changes in the capital stock. C) changes in the price level. D) changes in the number of workers.
When economic growth occurs, the
A) economy moves along its production possibilities frontier. B) production possibilities frontier shifts outward. C) production possibilities frontier becomes steeper. D) production possibilities frontier shifts outward but no longer limits the amount that can be produced.
In the country levying the tariff, the tariff will
A) increase both consumer and producer surplus. B) decrease both the consumer and producer surplus. C) decrease consumer surplus and increase producer surplus. D) increase consumer surplus and decrease producer surplus. E) decrease consumer surplus but leave producers surplus unchanged.