A society's institutions
A. include the laws and customs that influence the allocation of resources.
B. have no effect on people's abilities to make decisions.
C. are irrelevant when studying an economy.
D. are not related to the control of society's resources.
A. include the laws and customs that influence the allocation of resources.
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Starting from long-run equilibrium, a large tax cut will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; higher B. expansionary; higher; potential C. recessionary; higher; potential D. recessionary; lower; lower
A couple is considering moving to Tampa from Chicago. The cost of moving for Crystal is $300 while the cost of moving for Amelia is $600. Crystal earns $500 in Chicago and $550 in Tampa. Amelia earns $200 in Chicago and $1000 in Tampa. Will they move as a couple?
A. Yes, because the joint cost of moving ($900) exceeds what they could earn in Chicago ($700). B. No, because neither person would choose to move to Tampa on their own. C. Yes, because they receive a net gain of $150 by moving to Tampa. D. No, because they would lose $50 by moving to Tampa when all benefits and costs are considered. E. Yes, because they would earn $1,550 in Tampa but only $700 in Chicago.