The German Hyperinflation of the early 1920s was caused by
A) large deficits resulting from the high levels of war spending and falling taxes.
B) rising oil prices after World War I caused a severe stagflation and hyperinflation.
C) an overly aggressive monetary policy implemented to combat a severe recession.
D) the German government raising funds for expenditures by selling bonds to the central bank.
D
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A government subsidy
A) is a policy that can be used to help eliminate the deadweight loss from an external cost. B) can help achieve an efficient amount of output when the good has an external benefit. C) increases consumers' marginal benefit from the good. D) Both answers A and C are correct. E) Both answers B and C are correct.
Many saltwater fish species are currently being overexploited. This is an example of
a. efficiency b. the tragedy of the commons c. Pareto optimality d. a negative externality e. a positive externality
The government would challenge any merger in an industry if (i) the post-merger Herfindahl index would exceed 1,000, and (ii) the merger would increase the index by more than 100 points
Indicate whether the statement is true or false
Monopolistically competitive industries are inefficient because:
A. they realize diseconomies of scale. B. advertising costs retard technological advance and product development. C. they are overpopulated with firms whose plants are underutilized. D. monopolistically competitive sellers engage in misleading advertising.