Refer to the figure. Consumer surplus before the $4 tax is ________, and consumer surplus after the $4 tax is ________.
Fill in the blank(s) with the appropriate word(s).
Answer: abc; a
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If the required reserve ratio is 10 percent, currency in circulation is $400 billion, checkable deposits are $800 billion, and excess reserves total $0.8 billion, then the monetary base is
A) $480 billion. B) $480.8 billion. C) $80 billion. D) $80.8 billion.
Under the deficiency payments system, which was used to subsidize grain production?
a. the government purchased all surplus grain and destroys it. b. deficiency payments were increased when farmers cultivated their land more intensively. c. farmers were required to reduce cultivated acreage by 10 percent. d. farmers had a greater incentive to engage in beneficial crop rotation.
If there are both external benefits and external costs associated with the production and consumption of a good, and the external benefits are greater than the external costs,
a. Taxing it could bring us closer to the efficient solution b. Subsidizing it could bring us closer to the efficient solution c. Neither a tax or a subsidy could bring us closer to the efficient solution d. None of the above is true.
Generally, specialization leads to
A. reductions in people's skill levels. B. greater productivity. C. constant opportunity costs. D. greater self-reliance.