"Crowding out" is the theory that an increase in our federal government's budget deficit will likely:
A. decrease the national debt.
B. decrease interest rates.
C. decrease borrowing by households and businesses
D. increase the impact of the spending multiplier.
Answer: C
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Ceteris paribus, a decrease in the number of firms selling calculators will result in
A. A decrease in the supply of calculators. B. A decrease in the demand for calculators. C. An increase in the supply of calculators. D. An increase in the demand for calculators.
Job and pay disparity between men and women is explained fully by the job interruption that accompanies childbirth
Indicate whether the statement is true or false
Which statement is true?
A. On the production possibilities frontier there is zero unemployment. B. On the production possibilities frontier 95 percent of the labor force is employed. C. To get out of a recession, we must produce at some point beyond our production possibilities frontier. D. To have economic growth, we must push the production possibilities frontier inward.
If a good generates an external cost, the market will produce
a. some of the good but not enough b. too much of the good. c. an optimal amount of the good. d. none of the good.