Questions from General Economics

Q: If you were to conclude, after carefully examining data and using

If you were to conclude, after carefully examining data and using proper evaluation techniques, that a tax credit for attending college benefits the poor more than a tax deduction (of equal total cost...

Q: In a diagram of perfect competition, the marginal revenue line moves

In a diagram of perfect competition, the marginal revenue line moves up and down when there is exit and entry, respectively, because a) the market demand for the good rises and falls when there is ex...

Q: Of these, economists consider this the worst: a)

Of these, economists consider this the worst: a) inflation of 5 percent. b) recession. c) deflation of 5 percent. d) depression.

Q: If a program’s cost rises only with inflation and increases in those

If a program’s cost rises only with inflation and increases in those that qualify for the program, this represents a) an increase in spending using baseline budgeting. b) a decrease in spending usi...

Q: Joseph Schumpeter coined the phrase “creative destruction.” The idea of

Joseph Schumpeter coined the phrase “creative destruction.” The idea of creative destruction is that a) people need to be forced from their comfort zone in order to make crucial decisions that enhance...

Q: Without an increase in price, an increase in demand will lead

Without an increase in price, an increase in demand will lead to a) a shortage. b) a surplus. c) socialism. d) equilibrium.

Q: Policy makers have considered putting computer chips in cars that would allow

Policy makers have considered putting computer chips in cars that would allow tax collectors to charge people based on how often they drive during rush hours. These policy makers are dealing with the...

Q: If MR > MC, then when an additional unit is sold

If MR > MC, then when an additional unit is sold, the firm’s a) profit will be positive. b) profit will increase. c) profit will be negative. d) profit will decrease.

Q: Ticket scalping is a symptom of a) stupid promoters.

Ticket scalping is a symptom of a) stupid promoters. b) market prices being greater than the face value of the ticket. c) market prices being less than the face value of the ticket. d) stupid con...

Q: The underlying reason for the upward-sloping nature of the supply

The underlying reason for the upward-sloping nature of the supply curve is that a) the production of most goods comes with increasing marginal benefits. b) the production of most goods comes with i...