Crowding out occurs when:
a. an increase in private spending results in a decrease in government deficit.
b. an increase in private spending results in an increase in government deficit.
c. government deficit spending results in less private spending
d. government deficit spending results in more private spending.
c
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One reason that firms hire labor at the point where w = MPN is
A) if w < MPN, the cost (w) of hiring additional workers exceeds the benefits (MPN) of hiring them, so they should hire fewer workers. B) if w > MPN, the cost (w) of hiring additional workers is less than the benefits (MPN) of hiring them, so they should hire more workers. C) if w < MPN, the cost (w) of hiring additional workers equals the benefits (MPN) of hiring them, so they have the right number of workers. D) if w > MPN, the cost (w) of hiring additional workers exceeds the benefits (MPN) of hiring them, so they should hire fewer workers.
When marginal cost is below average total cost:
a. total cost is falling. b. total cost is rising. c. average total cost is falling. d. average fixed cost is rising. e. total variable cost is falling.
If Mason's marginal benefit derived from the consumption of another candy bar is greater than the price of the candy bar,
a. Mason will not purchase any more candy bars. b. Mason will increase his total satisfaction by purchasing the candy bar. c. the opportunity cost of the candy bar is lower than the price. d. Mason will decrease his total utility if he purchases the candy bar.
Changes in the quality of a good
a. do not present a problem in the construction of the consumer price index. b. present a problem in the construction of the consumer price index, and that problem is sometimes referred to as substitution bias. c. are not accounted for, as a matter of policy, by the Bureau of Labor Statistics. d. can lead to either an increase or a decrease in the value of a dollar.