Suppose the government spends $10 billion subsidizing firms producing electricity with wind turbines because these firms are high cost producers. Will the subsidies lead to economic growth and higher income levels?
What will be an ideal response?
No, the turbines are an inefficient form of producing electricity and therefore the subsidies will increase the opportunity cost of supplying it.
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The U.S. Health Resources and Services Administration (HRSA) forecasts that in 2020
A) the number of doctors in the United States will decrease and the number of doctors needed will increase. B) there will be a surplus of doctors in the United States. C) there will be a shortage of doctors in the United States. D) the number of doctors in the United States will increase and the number of doctors needed will decrease.
When you use a debit card to purchase a pair of jeans, you are
A) creating a 30-day loan from your bank to the seller. B) creating a 30-day loan from the seller to your bank. C) giving your bank an instruction to transfer funds directly from your bank account to the store's bank account. D) creating an overnight repurchase agreement between your bank and the store.
In long run equilibrium, a perfectly competitive firm: a. can earn positive economic profits. b. earns zero economic profits
c. can earn negative economic profits. d. can do any of the above.
Most countries tend to follow only one price index to measure the price level in an economy because all prices rise or fall at the same time or by the same amount
a. True b. False Indicate whether the statement is true or false