The above figure depicts the Edgeworth box for two individuals, Al and Bruce. If the endowment is at point a, and Bruce has no ability to bargain, the final allocation will be at point
A) a.
B) b.
C) c.
D) d.
D
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Everything else held constant, an autonomous tightening of monetary policy will cause
A) the quantity of aggregate demand to increase. B) the quantity of aggregate demand to decrease. C) aggregate demand to increase. D) aggregate demand to decrease.
The US government generally finances its debt by:
A. selling US securities. B. printing money. C. borrowing directly from the FED. D. borrowing directly from very large banks.
Suppose Iceland goes from being an isolated country to being an importer of coats. As a result,
a. consumer surplus increases for consumers of coats in Iceland. b. producer surplus increases for producers of coats in Iceland. c. total surplus remains unchanged in the coat market in Iceland. d. it is reasonable to infer that Iceland has a comparative advantage over other countries in coat production.
Deadweight loss
a. measures monopoly inefficiency. b. exceeds monopoly profits. c. equals monopoly profits. d. equals monopoly revenues minus profits.