Recent decades have seen a trend toward globalization, which means that:
a. many industries in the private sector are being bought by the government
b. domestic industries are being protected from foreign competition.
c. buying and selling in markets have increasingly crossed national borders.
d. large business houses have increased the market prices of their goods above marginal cost.
c
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An inferior good is one
A. produced by American industries. B. whose quantity demanded falls when the purchaser’s income rises. C. ordinarily bought by college students from college-town merchants. D. suitable for a garage sale.
The dead-weight loss from an excise tax:
a. is the difference between consumer surplus and producer surplus. b. is greater if demand is perfectly inelastic. c. is of little concern to policy makers since all excise taxes are "sin" taxes. d. is the lost surplus that results from higher prices and lower output resulting from the tax. e. is caused by a shift in consumer preferences when the tax is raised.
In Econland, 500,000 of the 2 million people in the country are employed. Average labor productivity in Econland is $15,000 per worker. Real GDP per person in Econland totals:
A. $3,750. B. $11,250. C. $60,000. D. $1,250.
When banks hold excess reserves the:
A. money multiplier underestimates how much money will be created in the economy. B. money multiplier overestimates how much money will be created in the economy. C. reserve ratio is not fully functioning, and should be lowered. D. reserve ratio is not fully functioning, and should be raised.