Refer to the graph showing the supply of books. A shift from S0 to S1 would most likely occur for what reason?
A. A decrease in the number of suppliers in the market
B. A decrease in the cost of producing books
C. An increase in the price of books
D. An increase in taxes levied on producers of books
Answer: B
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Which of the following statements best describes why we cannot be assured that bureaucrats who believe in the mission of their bureaus will always act in the public interest?
a. Logrolling among members of Congress ties the hands of the bureaucracy, preventing them from acting in the public interest. b. Bureaucrats do not personally benefit from larger budgets, but if they care about the mission of the bureau they will personally gain from acting in the public interest. c. Free riding on the work of other within the bureau will make acting in the public interest impossible. d. Self-interest is a powerful motivator, regardless of whether an individual operates in the public or private sector.
Foreign repercussions of changes in domestic spending may cause:
a. the GDP gap to be larger than the recessionary gap. b. the equilibrium income to increase by an amount equal to the change in net exports. c. the actual spending multiplier to be larger than the reciprocal of the marginal propensity to save plus the marginal propensity to import. d. equilibrium income to rise by a smaller amount than evidenced by the multiplier effect of autonomous spending increase. e. the real GDP to be larger than potential GDP.
Even a bank in good financial health can fail if there is a run on the bank
a. True b. False
If quota rights accrue to foreigners, then the domestic economy is better off with a quota than with a tariff
Indicate whether the statement is true or false