A ______ can be viewed as a negative tax.
a. surplus
b. deadweight loss
c. subsidy
d. supply curve
c. subsidy
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The greater the degree of specialization in the economy, the: a. easier it is to discover a double coincidence of wants
b. more feasible is a barter system. c. less likely it is that monetary exchange will develop. d. harder it is to negotiate an exchange rate between all pairs of goods. e. more likely it is that individual consumers are self-sufficient.
Suppose a hurricane causes a great deal of destruction in Florida. After the hurricane, it takes much longer than usual for the reconstruction of homes to take place. A possible explanation for this is
A. greed by suppliers of construction materials increased. B. environmental restrictions on lumbering in the Pacific Northwest were relaxed. C. prices of construction materials fell in the rest of the nation D. government prevented price gouging during the reconstruction period.
If the interest rate is positive, the present value of $1000 to be received in ten years is
A. equal to $1000. B. either greater than $1000 or less than $1000, depending upon the interest rate C. less than $1000. D. greater than $1000.
The fact that money can be exchanged for goods reflects money's role as a
A) cause of inflation. B) medium of exchange. C) unit of account. D) store of value.