Suppose the domestic supply (QS) and demand (QD) for skateboards in the United States is represented by the following set of equations:QS = -60 + 3PQD = 390 - 2PCalculate the change in consumer surplus when the United States shifts from no trade to free trade and imports skateboards from the rest of the world at a per unit price of $75.
A. -$2,850
B. -$6,300
C. +$3,375
D. +$2,850
Answer: C
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Which of the following assumptions made in deriving the simple deposit multiplier is unrealistic?
A) The Fed sets the required reserve ratio. B) The Fed is able to affect the level of reserves in the banking system. C) Banks loan out all of their excess reserves. D) The simple deposit multiplier is equal to 1 divided by the required reserve ratio.
In the United States, which workers displaced by trade are able to adjust the easiest?
a. those in the service industries b. those in the manufacturing industries c. Evidence indicates that there is no difference across industries. d. There is no available evidence on this topic.
Product demand is more elastic the longer the time period under consideration.
Answer the following statement true (T) or false (F)
In finance, leverage:
A. helps explain why a crash is so damaging after a bubble bursts. B. is using borrowed money to pay for investments. C. multiplies the effect of gains and losses in financial markets. D. All of these statements are true.