Which of the following would lead to a rightward movement along the aggregate expenditure line rather than a shift of the line itself?
a. A reduction of the marginal propensity to consume
b. A decrease in income of $100 billion
c. An increase in income of $50 billion
d. An increase in the interest rate
e. A $50 billion decrease in autonomous consumption spending
C
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According to the Coase Theorem, externality problems:
A. Do not exist in reality, because all costs and benefits are internal to firms B. Can be solved through private negotiations without the need for government intervention C. Must only be resolved by government action, through either taxes or subsidies D. Can never be resolved adequately because one party always gains while the other loses
Featherbedding refers to
A) the practice of laying off union activists. B) increased international competition and its negative impact on trade unions. C) union leaders arguing for higher wages when they know that they will not become unemployed given their seniority. D) the practice of inducing a firm to use more than the cost-minimizing level of labor.