Refer to Figure 3-1. If the product represented is an inferior good, an increase in income would be represented by a movement from
A) A to B. B) B to A. C) D1 to D2. D) D2 to D1.
D
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Externalities can lead to inefficient economic outcomes because:
A) firms do not have to pay the full cost associated with using inputs that cause pollution. B) firms that produce public goods tend to be monopolies. C) Both A and B are correct. D) none of the above
If choice architects frame choices in terms of social norms people will:
A. behave with the majority. B. be unaffected by what the majority is doing. C. behave in the opposite way, because "going rogue" is celebrated in our culture. D. behave according to how they view that norm.
The Federal Reserve System is run by the President of the United States
a. True b. False Indicate whether the statement is true or false
According to the Keynesian model, in what ways will expansionary fiscal policy stimulate aggregate demand?