If an increase in the federal deficit stimulates an economy, _____
a. an expansionary gap exists in the economy
b. the crowding in of private investment takes place
c. the crowding out of private investment offsets crowding in of private investment
d. the crowding out and crowding in of private investment cancels each other out
e. interest rates increase significantly
b
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Which of the following is a final good or service?
A) the CPUs purchased by Dell to be used in their computers B) the fertilizer purchased by Royal Lawn and Landscape C) the computers purchased by Office Depot for sale to its customers D) the grilled chicken purchased by Taco Bell for use in their burritos E) a new replacement muffler installed by Midas Mufflers
Given that resources can be allocated by the government, the market, a random process, or on a first-come first-serve basis, which of the following statements is true?
a. The market system is not entirely fair but it creates incentives to increase supplies and improve standards of living. b. The random process of allocation allows individuals to acquire purchasing power and enhances the value of the resources that they own. c. Since the government system does not distinguish between those who have income and those that do not, government allocation of resources is the most efficient. d. There will be no shortages under the first-come first-serve basis of allocation. e. A random process of allocation is fair in the sense that everyone gains and there are no losers.