The likely effect of a contractionary monetary policy in Japan would be to:
A. decrease the value of the dollar and increase the U.S. trade deficit.
B. increase the value of the dollar and decrease the U.S. trade deficit.
C. increase the value of the dollar and the U.S. trade deficit.
D. decrease the value of the dollar and the U.S. trade deficit.
Answer: A
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If price is initially above the equilibrium level
A) the supply curve will shift rightward. B) the supply curve will shift leftward. C) excess supply exists. D) all firms can sell as much as they want.
If the U.S. economy enters a recession, the
A. entire population will be partially unemployed. B. unemployment rate tends to increase. C. labor force tends to increase. D. economy experiences full employment.
If the price of action figures was $10 each, his total utility would be ____ and your marginal utility would be ____.
Table-Demand and Utility Table for action figures
A. $30 and $10
B. $36 and $12
C. $36 and $10
D. $26 and $12
Refer to the information provided in Figure 16.4 below to answer the question(s) that follow.Los Angeles International Airport (LAX) is located next to Playa Del Rey. The noise from air traffic negatively affects individuals living in Playa Del Rey, however, this cost is not considered by airlines or air travelers. The airlines feel they have a right to use the airspace while the individuals living in Playa Del Rey feel they have the right to quiet. The following diagram depicts the marginal costs and marginal benefits associated with air travel.
Figure 16.4Refer to Figure 16.4. Suppose the government assigns property rights to the residents of Playa Del
Rey, then the airlines and the residents engage in negotiations. The resulting efficient level of air travel is A. 0 units. B. 100 units. C. 120 units. D. indeterminate from the given information.