Ricardian Equivalence maintains that an increase in government spending financed by debt will result in a corresponding increase in
a. savings, in anticipation of future taxes.
b. output and consumption, stimulated by the additional government spending.
c. consumer spending, in anticipation of lower future taxes.
d. aggregate demand, because the additional spending was financed by borrowing rather than current taxation.
A
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Comparative risk analysis is
a. a risk assessment strategy c. a risk characterization approach b. a risk management strategy d. none of the above
At the current price of a good Al's consumer surplus equals 8 and Ben's consumer surplus equals 15. By using two-part pricing a monopolist could increase his profit by
A) 8. B) 16. C) 15. D) 30.
The WTO replaced the GATT in
A) 1900. B) 1945. C) 1960. D) 1995.
Suppose a price floor is set by the government above the market equilibrium price. Which of the following will result?
a. There will be a surplus. b. The quantity demanded will exceed the quantity supplied. c. The demand curve will shift to the left. d. None of these.