Subsidies can destroy wealth because
a. subsidies move assets from lower- to higher- valued uses
b. subsidies move assets from higher- to lower- valued uses
c. subsidies help producers only
d. subsidies help consumers only
b
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The loss to society resulting from a tax includes the
A) deadweight loss. B) consumer surplus paid to the government in the form of tax revenue. C) producer surplus paid to the government in the form of tax revenue. D) deadweight loss plus the consumer surplus and producer surplus paid to the government as tax revenue. E) deadweight loss minus the tax revenue collected by the government.
Under the liquidity premium theory, the expectation that future short-term rates will be constant results in a yield curve that
A) is flat. B) slopes upward. C) slopes downward. D) is flat, slopes upward, or slopes downward, depending on the size of the term premium at each maturity.
The term "dirty float" is used to describe a: a. currency that is allowed to float only in prosperous times
b. nation that switches from free to fixed rates of exchange. c. black market in foreign currencies. d. floating currency that is sometimes changed by government central bank authorities.
Firms that use a price-matching strategy attempt to keep price at:
A. the oligopoly price or the monopoly price. B. the monopoly price. C. marginal cost. D. the oligopoly price.