According to supply-side theory, if one starts from a balanced budget, a cut in taxes will tend to cause ________
A) a budget deficit
B) no change in the federal government budget
C) a decrease in aggregate supply and an increase in aggregate demand
D) a budget surplus
D
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One reason for the success that firms have in getting the government to erect and maintain barriers to foreign competition is members of Congress who engage in ________, where members in districts with protected industries agree to trade votes on issues
that concern other members in order to uphold tariffs. A) vote fixing B) gerrymandering C) logrolling D) filibustering
Refer to Figure 26.5. Which firm is producing the allocatively efficient level of output and is using the least amount of economic resources to produce each unit of output?
A. All of the firms. B. Firm D only. C. Firm B only. D. Firms B and D only.