If this is an open economy, the price of a car will be ________. 
A. $8,000/car
B. $6,000/car
C. $10,000/car
D. $14,000/car
Answer: C
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According to this theory of the term structure, bonds of different maturities are not substitutes for one another
A) segmented markets theory B) expectations theory C) liquidity premium theory D) separable markets theory
The market demand function for wheat is Qd = 10 - 2P and the market supply function is Qs = 4P - 2, both measured in billions of bushels per year. Suppose the government wants to increase the price of wheat to $3/bushel and they impose a price floor to achieve their goal. What is the size of the producer surplus?
A. $4 billion B. $6 billion C. $10.5 billion D. $8 billion
Which of the following is true? a. The private market provides too much of goods that generate external benefits
b. In the case of external benefits, if we could add the benefits that are derived by non-paying consumers, the supply curve would shift to the right, increasing output. c. In the case of external benefits, a tax equal to external benefits would result in an efficient level of output. d. In the case of public goods, when people act as free-riders, some goods having benefits greater than costs will not be produced.
Which statement is true?
A. Because the United States has the largest consumer market in the world, it has been targeted by foreign sellers B. China targeted the large U.S. consumer market to help propel its strong economic growth over the last 20 years C. Today, the Chinese run such huge trade surpluses with the U.S. that they can finance most of the United States' federal budget deficit D. All the choices are true