If an import tariff is reduced, the domestic quantity demanded is ____ and the quantity supplied domestically is ____, ____ the quantity of goods imported.
a. greater; lower; reducing
b. lower; greater, reducing.
c. greater; lower; increasing.
d. lower; greater; increasing.
c
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Suppose a competitive market is in equilibrium at price P' and quantity Q'. If the demand curve becomes less elastic, but the same price-quantity equilibrium is maintained, what happens to consumer and producer surplus?
A) Both PS and CS increase B) CS increases and PS decreases C) CS increases and PS remains the same D) Both CS and PS decrease
Discuss why many economists maintain that continued deficit spending by government is likely to "crowd out" (decrease) investment spending in the long run.
What will be an ideal response?
In which of the following ways, banks began in Italy and England?
a. Monarchs were the first bankers, lending out cash at zero interest to help the poor learn a craft and develop themselves intellectually. b. Churches were the first bankers, lending out cash to help the poor learn a craft and develop independence. c. Goldsmiths were the first bankers, and the paper receipts they issued for gold held on deposit became valued as money. d. Fishermen were the first bankers, and the paper receipts they issued for the fish they stored in the holds of their ships became valued as money.
If we know average total cost and the amount of output, then we can always calculate total cost by
A. adding average total cost and the amount of output. B. subtracting the amount of output from average total cost. C. dividing average total cost by the amount of output. D. multiplying average total cost by the amount of output.