In what way is the result of an excise tax imposed on either demanders or suppliers similar to the result of a price floor?
a. The amount that consumers pay for the good will be less than they previously paid
b. The amount of the good that will be traded in the market will be greater than previously traded
c. both price floors and excise taxes create excess demand
d. The amount that consumers pay for the good will be greater than they previously paid
e. Both price floors and excise taxes create excess supply
D
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A Federal Reserve publication proclaimed that "Trade is a win-win situation for all countries that participate." This statement is
A) false since it ignores the workers who lose their jobs as result of international trade. B) true because all consumers and workers benefit from international trade. C) false since not all countries participate in international trade. D) true because it refers to countries; individuals may be losers as a result of international trade.
When a country opens up to free trade
A) winners and losers are created. B) comparative advantage dictates that the country focus on production of some goods and services at the expense of others. C) the gains outweigh the losses. D) All of the above.
Which of the following attributes of the recession of 2008-2009 is most supportive of the Keynesian view that the crowding-out effect will be minimal during a severe recession?
a. the immediate increase in output and employment generated by the budget deficits of 2008-2009 b. the decline in the general level of prices during 2009 c. short-term interest rates falling to near zero, despite growing budget deficits during 2008-2009 d. short-term interest rates falling to near zero, as the budget deficit declined during 2008-2009
You are the manager of a firm that produces output in two plants. The demand for your firm's product is P = 96 ? 15Q, where Q = Q1 + Q2. The marginal costs associated with producing in the two plants are MC1 = 6Q1 and MC2 = 3Q2. How much output should be produced in plant 2 in order to maximize profits?
A. 4 B. 1 C. 2 D. 3