If the full-employment level of real GDP is greater than the equilibrium level of real GDP, the nation would be experiencing a(n)
A. rising prices.
B. recessionary gap.
C. demand-pull inflation.
D. inflationary gap.
Answer: B
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Diseconomies of scale is a result of
A) mismanagement. B) difficulties of coordinating and controlling a large enterprise. C) specialization of labor, capital, and management. D) technological progress. E) larger fixed costs as the firm's production increases.
Which of the following is an example of a positive externality?
a. air pollution b. littering in a public park c. buying a new automobile d. planting a nice garden in front of your neighbor's house e. pollution of a stream
The best example of a durable good is
a. food b. clothing c. tobacco d. gasoline e. an automobile
The national debt
A. Equals the dollar amount of outstanding U.S. Treasury bonds. B. Will be paid off when the budget is finally balanced. C. Is paid off each fiscal year when the debt is refinanced. D. Will never be paid off in any given year, but it will be entirely paid off when it is refinanced over a number of years.