According to the graph shown, if this economy were to open to trade, the amount consumed domestically would:
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
A. increase by 35.
B. increase by 40.
C. decrease by 40.
D. increase by 75.
C. decrease by 40.
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Some economists criticize the Lorenz curve because it
A) includes too many things in measuring income, such as food stamps, housing aid, and other government programs. B) does not account for the effect of age on a family's income. C) measures unreported income earned in the underground economy. D) uses after-tax income when pre-tax income is more appropriate.
If the demand for a good is elastic, a decrease in its price will result in additional revenue because the increase in quantity more than offsets the decrease in price
a. True b. False Indicate whether the statement is true or false
During the Great Recession, securitization:
a. Permitted mortgage originators to shift the negative impact of their underwriting mistakes to investors. b.Was one of the only sources of relief for investors who were suffering heavy losses on their mortgage investments. c. Was one of the main strategies used by the Federal Reserve to cure the economic downturn. d. Was caused by excessive money creation by the Federal Reserve immediately before and during the downturn. e. None of the above.
What is the difference between macroeconomics and microeconomics? Give an example of a question that a macroeconomist might be interested in answering, then do the same for a microeconomist