Which of the following are the most likely short-run effects of an increase in government expenditures?
A) Increase/Increase/Increase
B) Increase/Increase/Decrease
C) Decrease/Increase/Increase
D) Decrease/Decrease/Increase
E) No change/Decrease/Increase
Ans: C) Decrease/Increase/Increase
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The above figure shows the marginal benefits and marginal costs of a college education. If no subsidies are paid, colleges charge tuition of
A) $0. B) $5,000. C) $10,000. D) $15,000.
Under conditions of oligopoly, economies of large-scale production mean that: a. firms are able to sell all of the output they desire
b. it is difficult for a firm to determine its profit-maximizing price and output. c. large firms would find it more profitable to break up into smaller production units. d. small firms are at a disadvantage in competing with relatively large firms.
The chief economist of the country of Elbonia has predicted that the new policies adopted by the government will lead to higher economic growth accompanied by lower rates of inflation. The currency of Elbonia is expected to: a. weaken
b. appreciate. c. depreciate. d. devaluate.
Usury laws are a form of price ____________ and the minimum wage law is a form of price ___________________.
A. floor; floor B. ceiling; ceiling C. ceiling; floor D. floor; ceiling