The above figure shows the market for rice in Japan. SDomestic represents the domestic supply curve, and Sworld represents the world supply curve. If imported rice is banned, the loss in social welfare is
A) a + b + c + d + i + j.
B) a.
C) c + e.
D) a + b + c + d.
D
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Open market purchases of government securities
A) are designed to increase trading on the stock exchange. B) generally decrease the money supply. C) always decrease the money supply. D) cause bank reserves to increase. E) all of the above
A policymaker against stabilizing the economy would be likely to believe
a. policymakers should "do no harm". b. there are no obstacles to the practical application of policy in real life. c. policy lags are short enough that implementing policy changes in response to recession is not too risky. d. policy mitigates the magnitude of economic fluctuations.
Points outside the Production Possibilities Frontier are
A. unattainable. B. associated with some unemployment. C. attainable. D. both attainable and unattainable.
If 1 U.S. dollar exchanges for 8.97 pesos, how much would it cost in pesos to purchase a Big Mac priced at $2.75?
What will be an ideal response?