Which of the following does a social planner necessarily need to know to restore efficiency in a monopoly market?
A) The monopolist's marginal costs only
B) The buyers' demand for a close substitute of the product sold in the market
C) The monopolist's marginal revenue and the tax levied on the sale of the good
D) The monopolist's marginal costs and the buyers' willingness to pay for the good
D
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One of the difficulties with an economic policy such as rent control is that
a. politicians do not consider its secondary effects b. economists disagree about the impacts of the policy c. it is difficult to enforce antidiscrimination laws in the rental housing market d. it makes landlords wealthy at the expense of renters e. pressure from landlords resulted in its repeal in many cities
What is the current market price of a bond that pays $200 per year indefinitely and has a current yield of 16 percent?
a. $800 b. $1250 c. $3,200 d. $8,000 e. $12,500
The Federal Reserve
a. prints money for use by individuals during transactions. b. is a nation's monetary authority, responsible for controlling the money supply. c. issues government debt. d. makes loans and takes deposits from individuals. e. collects taxes from corporations only while the Treasury Department collects personal income and Social Security taxes.
Farm programs that guarantee a price higher than equilibrium
a. cause shortages b. decrease government spending c. decrease taxes d. raise farm property values e. increase suburban development