The usual aim of expansionary fiscal policy is to increase
A. aggregate demand.
B. government spending.
C. both aggregate demand and aggregate supply.
D. aggregate supply.
Answer: A
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Rents represent earnings that
a. exceed marginal cost b. are less than marginal revenue product c. are less than what producers would require to supply products d. exceed opportunity revenue e. exceed opportunity cost
Refer to Figure 12.2. How many Nash equilibriums are there?
A. 0
B. 1
C. 2
D. 3
A seller's verbal assurance that a used car is a plum (high-quality car):
A. is not effective at reducing the problems associated with asymmetric information. B. is an effective way for sellers to prove that the good they are selling is of high quality. C. is a more efficient way to prove high quality than a money-back guarantee because it does not cost the seller any money to make the assurance. D. provides the same protection against adverse selection than does a repair guarantee.
An increase in the price of blueberries would lead to a(n)
a. increased supply of blueberries. b. a movement up and to the right along the supply curve for blueberries. c. a movement down and to the left along the supply curve for blueberries. d. Both a and b are correct.