When real Gross Domestic Product (GDP) exceeds total planned real expenditures,
A) a higher level of equilibrium real Gross Domestic Product (GDP) will prevail.
B) the circular flow will increase.
C) a lower level of equilibrium real Gross Domestic Product (GDP) will result.
D) there will be unplanned decreases in inventories.
C
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Assume that air pollution from a copper smelter imposes external costs on people who live near the smelter. If the victims of the pollution could not legally enforce the right of their property not to be damaged, the amount of pollution reduction
A) would be significantly less than if the owners of the smelter were legally liable for damages. B) would be less than the amount at which the marginal benefit of pollution reduction equaled the marginal cost. C) would be too small; the government would have to intervene to bring about an efficient outcome. D) would be the same as if it would be if the owners of the smelter were legally liable.
Between 1800 and 1840, land laws became increasingly ___________ , primarily due to _____________
a. conservative; increases in the price per acre of available land b. conservative; legal limits on the sale of land to farmers c. liberal; the extension of long-term credit by the federal government to land buyers d. liberal; decreases in the minimum acreage required for purchase