The single most important reason that the recession of 1929 turned into the Great Depression was
a. the failure of Pres Roosevelt's New Deal Program
b. the decline in the US money supply
c. the stock market crash
d. the Smoot-Hawley Tariff Act
Answer: b. the decline in the US money supply
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Steven lives in a big city where there is a shortage of parking. He has a parking spot in his driveway where he parks his car. Which of the following statements is most correct?
A) The opportunity cost of using the spot is zero, because Steven owns the house. B) Steven has a lower opportunity cost of owning a car than his neighbor, who must rent a parking spot. C) The opportunity cost of using the parking spot is the price he could charge someone else for using the spot. D) The opportunity cost depends on how much Steven's mortgage payment is.
The differences that people settle by voting are most likely to include:
a. issues that affect few people. b. decisions that need to be taken at a short notice. c. decisions that are divisible. d. public goods.
Firms are assumed to be price takers in a perfectly competitive market because
a. they are not allowed by law to charge any price other than the market price b. they must accept any price offered by consumers c. they earn high enough profits at the market price, so they do not want to hurt consumers by raising their prices d. each firm is too small to influence the market price e. there are too few buyers in the market to absorb price changes
Refer to Figure 15-19. If the monopoly firm perfectly price discriminates, then consumer surplus amounts to
a. $0. b. $1,562.50. c. $3,125. d. $6,250.