Neither the demand nor the supply of automobiles is perfectly elastic or inelastic. If the government imposes a $1,000 tax on automobiles, then the price of an automobile buyers pay
A) increases by $1,000.
B) increases by less than $1,000.
C) increases by more than $1,000.
D) decreases by $1,000.
E) does not change.
B
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In a frictionless labor market:
A) there is always a shortage of workers. B) the wage adjusts instantly to clear the market. C) there is always a surplus of workers. D) the ongoing wage rate does not change for long periods of time.
An asset's fundamental value equals
A) its face value. B) its maturity value. C) the market's best guess of the present value of the asset's expected future returns. D) the weighted sum of its market price over the recent past.
The members of Federal Reserve district bank boards of directors who are bankers are known as
A) Class A directors. B) Class B directors. C) Class C directors. D) Class D directors.
Drug trafficking leads to
A. a net outflow of money from the United States. B. a net inflow of money into the United States. C. no net outflow or net inflow.