An increase in government spending will have no effect on real GDP if
A. the tax decrease is offset by an increase in government spending.
B. the Ricardian equivalence theorem holds.
C. people look at changes in taxes only in the present.
D. there is no crowding out.
Answer: B
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In the long run:
A) all factors of production are fixed. B) only some inputs of a firm can be changed. C) all firms earn positive economic profits. D) all factors of production can be changed.
A monopoly:
A. is a price taker. B. faces competition from other firms producing close substitutes. C. restricts its output. D. sets a low price by controlling the level of output.
An increase in U.S. imports from Mexico will cause a decrease in income for Mexican individuals and businesses
a. True b. False Indicate whether the statement is true or false
In an oligopoly, advertising: a. allows a firm to sell any quantity it wishes
b. shapes consumers' preferences. c. shapes perceived demand for a price taker. d. allows a firm to raise the prevailing market price.