Questions from General Economics

Q: 6.1. When the economy operates at full employment,

6.1. When the economy operates at full employment, an increase in government spending must crowd out consumption. __________ (True/False) 6.2. A(n) __________ economy is open to trade, whereas a clos...

Q: 4.1. Who developed the theory of scale of the

4.1. Who developed the theory of scale of the market? a. Joseph Schumpeter b. Milton Friedman c. Adam Smith d. John Maynard Keynes 4.2. The notion that innovation is promoted by the competitive d...

Q: 3.1. According to the model of voting developed in

3.1. According to the model of voting developed in the chapter, the choices made by the government match the preferences of the voter. 3.2. The self-interest theory of government explains...

Q: 4.1. Under a system of marketable pollution permits,

4.1. Under a system of marketable pollution permits, a firm with (low/high) abatement costs will buy permits from a firm with (low/high) abatement costs. 4.2. Arrow up or down: A sw...

Q: 2.1. The private cost of production includes the amount

2.1. The private cost of production includes the amount a firm pays for , , and . 2.2. The external cost of production is the cost incurred by . 2.3. The social cost o...

Q: 1.1. The optimal level of pollution abatement is the

1.1. The optimal level of pollution abatement is the level at which the of abatement equals the of abatement. 1.2. The marginal cost of abatement typically (incr...

Q: 3.1. Compared to a pollution tax, a uniform

3.1. Compared to a pollution tax, a uniform-abatement policy is (more/less) efficient because it does not exploit differences in across firms. 3.2. The “command” part of a command...

Q: 3.1. Arrows up or down: A decrease in

3.1. Arrows up or down: A decrease in the supply of nurses will the equilibrium wage and the equilibrium quantity of nursing services. 3.2. Arrows up or down: An increase in the demand for nu...

Q: 1.1. The marginal revenue product of labor equals times

1.1. The marginal revenue product of labor equals times . 1.2. A profit-maximizing firm will hire the number of workers where equals . 1.3. Your favorite professio...

Q: 4.1. Government transfer and tax policies increase the income

4.1. Government transfer and tax policies increase the income share of the lowest quintile of the income distribution from about percent to about percent. 4.2. The coll...