Changes in how quickly money circulates through the economy can cause problems for __________ policy.
a. monetary
b. fiscal
c. tax
d. trade
a. monetary
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The view that taxes should impose as little excess burden as possible and should be shared fairly among the taxpayers is consistent with the view of government ____
a. as a type of club b. as a benevolent despot c. as a constitutional republic d. as a constitutional democracy
If a price floor of $23 were placed on the market in the graph shown, which area represents the surplus that is transferred?
A. B + C + D
B. B + C
C. C
D. B
External costs occur because
A. Firms make a choice other than the most cost-efficient production method. B. Private costs do not reflect the full costs to society. C. All costs are absorbed by the firm. D. Government failure increases costs for the firm.
As firms enter a monopolistically competitive market in the long run:
A. price increases, the market quantity demanded increases, and the quantity supplied by an individual firm increases. B. price decreases, the market quantity demanded increases, and the quantity supplied by an individual firm decreases. C. price decreases, but firm profits increase as average costs decrease. D. price increases and firm profits increase.