Suppose that the federal government provides wheat farmers with a price floor above the market equilibrium price of wheat, creating a surplus. Which of the following causes a reduction in the surplus of wheat?
a. An increase in the supply of wheat.
b. An increase in the price of wheat.
c. A decrease in the demand for wheat.
d. Elimination of the price floor.
d
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In 2012, Ben Bernanke expressed which concern about persistently high unemployment?
A) It would result in high inflation. B) It would result in structural damage to the economy that would last for years. C) It would never decline to desired levels. D) It would cost him his job.
For a person who owns and operates an automobile, insurance premiums are a __________ and maintenance and repairs are a __________
a. revenue; cost b. fixed cost; fixed cost c. variable cost; variable cost d. variable cost; fixed cost e. fixed cost; variable cost
Corrective taxes work by ______.
a. internalizing external costs b. externalizing internal costs c. subsidizing moral hazards d. criminalizing adverse selection
How many countries are in the Euro area?
A) 19 B) 27 C) 21 D) 11