The above figure shows the demand and marginal cost curves for a monopoly. The deadweight loss of this monopoly equals
A) h.
B) c.
C) c + f.
D) c + d + e + f.
C
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The increase of the real money supply by 10% by the Federal Reserve when the unemployment rate rises by 1% is an example of
A) the conduct of procyclical monetary policy. B) the utilization of feedback policy rule. C) the utilization of rigid policy rule. D) the conduct of nondiscretionary fiscal policy.
Hong Kong and Japan have achieved relatively high incomes per capita despite lacking an abundance of natural resources
a. True b. False Indicate whether the statement is true or false
The greater the magnitude of the external benefits of production, a. The larger is the deadweight loss from underproduction
b. The greater would be the optimal subsidy. c. The further the private market solution ignoring those benefits would deviate from the socially efficient level of output. d. All of the above are true
If the net exports component of U.S. GDP is negative, then it is an indication that
a. Americans buy insufficient exports b. Americans buy too many exports c. GDP will be underestimated d. Americans export more than they import e. Americans export less than they import