You are more likely to do-it-yourself than hire a plumber to repair a leaky drain pipe
a. as the tax rate on your earned income dramatically decreases
b. if the opportunity cost of your time decreases
c. the less knowledge and experience in plumbing repair work that you possess
d. if you already own the specialized tools required to complete the repair work
e. as the transaction cost of the do-it-yourself repair work increases
D
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An increase in government purchases of $200 billion will shift the aggregate demand curve to the right by
A) less than $200 billion. B) more than $200 billion. C) $200 billion. D) None of the above are correct. This policy shifts the long-run aggregate supply curve.
________ protection, similar to the escape clause in U.S. law, refers to temporary protection given to local industries facing competition from fairly traded foreign products
A) Safeguards B) Countervailing duty C) Fair trade D) Competitive trade
Twenty-four years before CUSTA, another agreement between the same countries covered trade in
A) textiles. B) steel. C) autos. D) agriculture. E) telecommunications.
In monopolistic competition there is allocative inefficiency because
A. Production is not at the minimum ATC. B. Price is greater than MC. C. Price is greater than the minimum ATC. D. Of excess capacity.