Which of the following is a "guns or butter" decision?
(A) A school has to decide whether to build a new gym or renovate the auditorium.
(B) A man must decide whether to install an alarm system in his house or buy new furniture for the living room.
(C) A woman has to decide whether to replace her old car with a new sports car or a family sedan.
(D) A country must decide whether to use its steel to build new fighter jets or new sports cars.
Ans: (D) A country must decide whether to use its steel to build new fighter jets or new sports cars.
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If Y=C+I+G but Md< Ms, then
a. interest rates must rise and output must fall. b. both interest rates and output must fall. c. interest rates must fall and output must rise. d. both interest rates and output must rise. e. none of the above.
Sales and excise taxes are:
a. progressive. b. proportional. c. regressive. d. fixed-revenue.
When Coca-Cola put real cocaine in their soda in the early 1900's, then what else did they create?
A. A new equilibrium point on the Production Possibiliites Curve. B. A more inelastic demand curve. C. A more elastic demand curve. D. A new equilibrium point on the total revenue curve.
In the Microsoft antitrust case, the federal government said in essence that:
A. the mere presence of monopoly violated the Sherman Act, irrespective of Microsoft's behavior. B. Microsoft was a "bad monopoly." C. Microsoft was generally a "good monopoly" but that its tying contracts involving Internet Explorer violated the Clayton Act. D. the case was similar to the U.S. Steel case of 1920.