Suppose that in some country the price of silver increased from $30 per ounce to $31 per ounce during a time when the overall price level increased by 5 percent. During this period, the real price of silver
a. increased.
b. decreased.
c. stayed the same.
d. might have increased, decreased or stayed the same; more information is needed to be sure.
b
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Suppose the United States has a Gini coefficient of 0.4 and Sweden has a Gini coefficient of 0.25. Which of the following statements is true?
A) Income distribution is changing faster in the United States. B) The distribution of income is more equal in the United States. C) Without information on population, it is not possible to compare income distribution between countries. D) The distribution of income is more equal in the Sweden.
The use of money ________ barter, and ________ economic specialization
A) eliminates the need for, increases B) eliminates the need for, decreases C) enhances the efficiency of, increases D) enhances the efficiency of, decreases
Why was the Munn v Illinois (1877) court case particularly important with regard to government regulation?
(a) It upheld the traditional right of businesses to act freely without interference by government. (b) It established the right of government at any level to regulate any business activity if it was deemed desirable for any reason. (c) It established the right of government to regulate any and all businesses wherever it was deemed desirable to promote competition. (d) It established the right of government to regulate any business that had become "clothed in the public interest."
A firm that generates pollution is illustrated in Figure 9.7. If the government imposes a pollution tax equal to P1, the marginal benefit to the firm of abating A2 is:
A. P1. B. P2. C. P1 - P2. D. P2 - P3.