In order to minimize the cost of producing a given level of output, a firm manager should use more inputs when:
A. that input's price falls.
B. that input's price rises.
C. the prices of other inputs fall.
D. that input's price remains the same.
Answer: A
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When there is a resource for which property rights are not well defined and there is a difference between private costs and social costs, then all but which of the following is a way to close the difference?
A) the free market system B) taxation C) subsidization D) regulation
Which of the following historical events is often cited as an example of the successful implementation of Keynesian theory?
a. the Kennedy-Johnson tax cut of 1964 b. the price controls of the Nixon administration c. the anti-inflation policies of the Carter administration d. the series of tax cuts implemented by the Reagan administration during the 1980s