If the country illustrated in Figure 17-12 is initially trading without restrictions at a world price of $1.00, net welfare loss as a result of a tariff of $0.50 per unit is represented by area
a. c + i + e + f
b. i + f
c. i
d. f
e. b + d
Answer: b
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When a government has a budget surplus, the surplus
A) helps finance investment. B) crowds-out private saving. C) must be subtracted from private saving to get total saving. D) increases the world real interest rate.
Economic models are of limited use since they cannot be tested empirically with actual data
a. True b. False Indicate whether the statement is true or false
For the Bureau of Labor Statistics to place someone in the "unemployed" category, that person must
a. be available for work. b. have tried to find employment during the previous week. c. have previously been employed. d. All of the above are correct.
The CPI basket of goods represents those goods and services purchased by urban consumers because it represents:
A. over 90 percent of our population. B. over 80 percent of our population. C. 78 percent of our population. D. 60 percent of our population.