Which of the following is true of protectionism?
A) It lowers prices for domestic consumers and increases social surplus.
B) It increases prices for domestic consumers and also increases social surplus.
C) It increases prices for domestic consumers and lowers social surplus.
D) It lowers prices for domestic consumers and also reduces social surplus.
C
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Economists say that a market where goods are not consumed by those valuing the goods most highly is
a. laissez-faire.. b. unequal. c. inefficient. d. rational.
If people decide to hold some of their cash and not deposit it, then the:
A. money multiplier overestimates how much money will be created in the economy. B. reserve ratio is not fully functioning, and should be raised. C. reserve ratio is not fully functioning, and should be lowered. D. money multiplier underestimates how much money will be created in the economy.
The more inelastic the demand for a product, the more the actual burden of a tax on the product will:
A. fall on sellers. B. fall on buyers. C. fall equally on both buyers and sellers. D. create a larger deadweight loss (or excess burden).
The various money supply measures (M1 and M2) are used to distinguish the
A. Speed with which banks transfer funds between themselves. B. Speed with which banks transfer funds between savings and checking accounts. C. Liquidity and accessibility of assets. D. Rate at which money flows through the economy.