If the government imposes an effective ________, a deadweight loss ________
A) price floor; does not occur
B) price ceiling; does not occur
C) price ceiling; occurs
D) price support; does not occur
E) Both answers C and D are correct.
C
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The crowding-out effect works through interest rates to:
A. decrease the effectiveness of contractionary fiscal policy. B. decrease the effectiveness of expansionary fiscal policy. C. increase the effectiveness of expansionary fiscal policy. D. increase the effectiveness of contractionary fiscal policy.
The benevolent social planner wants to extract the ________ the limited resources we have been given, and her objective is to ________ the size of the economic pie
A) greatest amount of happiness from; minimize B) greatest amount of happiness from; maximize C) least productive of; minimize D) least productive of; maximize