Use the figure below to answer the following question.
If actual production and consumption occur at Q1
A. there is deadweight loss of b + d.
B. there is deadweight loss of e + d.
C. economic surplus is maximized.
D. consumer surplus is maximized.
Answer: A
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Holding everything else constant, a decrease in the price of bicycles will result in
A) an increase in the demand for bicycles. B) a decrease in the supply of bicycles. C) a decrease in the quantity of bicycles demanded. D) an increase in the quantity of bicycles demanded.
Hughes and Cain (2011) effectively argue that advancements in power technology helped open new opportunities for the strategic placement of cities and big factories
Indicate whether the statement is true or false
Which statement is true?
A. The recessions of 1973-1975 and 1981-1982 were both mild. B. The recessions of 1973-1975 and 1981-1982 were both severe. C. The recession of 1973-1975 was mild; the recession of 1981-1982 was severe. D. The recession of 1973-1975 was severe; the recession of 1981-1982 was mild.
Rational expectations theorists believe that governments publicizing their economic goals ______.
a. is necessary to educate the people, so they behave as intended b. leads people to act in their own interests and undercut the government’s intended outcomes c. prevents people from being able to anticipate the future of the economy d. is the most important step in being able to meet the government’s goals