Which area represents the net gain to society? Should the reduction in output from QC to QE take place? Why or why not?
Use the following graph of the refined petroleum market to answer the questions below.
Area D represents the net gain to society. Yes, the reduction should take place to achieve an efficient allocation of resources. This improvement is evidenced by the fact that the net gain is positive.
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The primary reason the federal budgeting process changed in 1921 was that _____
a. the level of government expenditures were increasing b. the President wanted more power c. federal agencies wanted less responsibility d. World War II forced the military to get involved
Which of the following is true? a. Virtually all theories in economics are expressed using a ceteris paribus ("let everything else be equal" or "holding everything else constant") assumption. b. The fallacy of composition is that, even if something is true for an individual, it is not necessarily true for many individuals as a group. c. One must always be careful not to confuse correlation
with causation. d. All of the above are true.