One important unintended consequence of the Smoot-Hawley Tariff Act was to:
a. lessen the severity of the Great Depression by increasing exports.
b. provide the federal government with an effective tool for exercising monetary policy.
c. increase the efficiency of domestic automobile production.
d. increase the severity of the Great Depression by causing other countries to retaliate, and thus leading to a decline in exports.
e. increase the U.S. government budget deficit by $15 million.
d
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Suppose milk and cereal are compliments and the demand for milk is Qdm = 40 - 6Pm - 2Pc, where Qdm stands for millions of gallons of milk demanded, Pm stands for the price of milk and Pc stands for the price of cereal. The supply of milk is Qsm = 6Pm - 8, where Qsm stands for millions of gallons of milk supplied. The demand and supply of cereal are Qdc = 90 - 5Pc - Pm and Qsc = 5Pc - 10, respectively, where Qdc stands for millions of boxes of cereal demanded and Qsc stands for millions of boxes of cereal supplied. Suppose the government imposes a $2.00 per gallon tax on milk. The new general equilibrium price of milk is:
A. $2.37. B. $4.37. C. $0.37. D. $3.39.
The prisoner's dilemma game:
A. is a zero sum game. B. is a game of chance. C. is a game with no dominant strategies. D. is a game with a stable equilibrium.
One reason many people make their own Hollandaise sauce rather than buy it is that
a. they can maintain control over the quality during production b. the total cost of ingredients is the same as the price of store-bought sauce c. firms do not make high-quality Hollandaise sauce d. people place a high value on their time e. firms do not produce goods that can be made at home
Which statement about public assistance is false?
A. It is aimed solely at the poor. B. It has failed completely. C. It has not ended poverty. D. It has fostered a permanent underclass.