According to an old saying, when too much money is chasing too few goods, we have a(n)
A. recessionary gap.
B. inflationary gap.
C. full employment.
D. paradox of thrift.
Answer: B
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The larger a country is relative to the rest of the world, the less likely it is to be able to produce a net benefit for its citizens by imposing an import tariff.
Answer the following statement true (T) or false (F)
The table above gives the supply and demand schedules for scooters. Because of increased injuries sustained by children riding scooters, Citizens Against Scooter Accidents successfully lobbies the government to impose a price floor of $80
00 on scooters. a) What is the quantity demanded and supplied after the price floor has been imposed? b) Is there any shortage or surplus at this price floor? If so, how much? c) If the price floor is raised to $110.00, what is the quantity demanded and supplied? d) At a price floor of $110.00, is there any shortage or surplus? If so, how much?
Suppose that you are a fishing boat owner and that you have purchased a boat for $75,000 with a 15 year loan for the full amount. What is your fixed cost per year, ignoring interest payments?
a. $1,000 b. $7,500 c. $5,000 d. $2,500 e. $3,750
Consider two industries in which firms hold the following market shares: Industry A: 25%, 20%, 18%, 15%, 8%, 7%, 4%, 2%, 1% Industry B: 30%, 10%, 9%, 8%, 8%, 8%, 8%, 6%, 6%, 5%, 2% What are the concentration ratios for each industry? Which is more competitive?