A fixed exchange rate, say, Mexican pesos per dollar, is determined by
a. U.S. consumers that buy Mexican exports
b. the U.S. government
c. U.S. businesses that export to Mexico
d. the foreign exchange market
e. the levels at which other exchange rates float
B
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The table above describes the market for paper. The production of paper produces pollution. There are no external benefits. Now suppose a Pigovian tax is successfully implemented and the efficient quantity of paper is produced
What is the total tax revenue collected by the government per week? A) $120 B) $840 C) $1,200 D) $1,800
Corn flakes are
A) a rival good because many firms produce them. B) a rival good because if another person wants some corn flakes society has to use additional resources to produce corn flakes for that person. C) a non-rival good because there are only a few firms in the industry. D) a non-rival good because even if another person wants some corn flakes so many corn flakes are produced that no additional resources are used to satisfy this new customer's needs. E) a public good.
The maximum amount by which the entire banking system can create money is equal to:
a. a fraction of its excess reserves. b. a fraction of its required reserves. c. a multiple of its total reserves. d. a multiple of its excess reserves. e. its excess reserves.
Which of the following is not an automatic stabilizer:
a. Personal income taxes. b. Business profits taxes. c. Welfare payments. d. Government spending for new bridges and roads.