Refer to Figure 2-1. Harvey receives his first paycheck for working as an ice cream vendor. To which of the arrows does this transaction directly contribute?
a. B only
b. A and B
c. C only
d. C and D
Ans: d. C and D
You might also like to view...
Spain is an importer of computer chips, taking the world price of $12 per chip as given. Suppose Spain imposes a $5 tariff on chips. As a result,
a. Spanish consumers of chips and Spanish producers of chips both gain. b. Spanish consumers of chips gain and Spanish producers of chips lose. c. Spanish consumers of chips lose and Spanish producers of chips gain. d. Spanish consumers of chips and Spanish producers of chips both lose.
When faced with a market failure, the government:
A. often encourages the well-functioning firms to stay through protectionist policy. B. usually tries to redistribute the existing surplus more fairly. C. generally enacts thoughtful policy in order to create market efficiency. D. always takes over the market.
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD3 the result in the short run would be:
A. P1 and Y2. B. P2 and Y3. C. P3 and Y1. D. P2 and Y2.
Which of the following is a microeconomics question?
A. Should Congress and the president take action to reduce global warming? B. Is it sensible for a government to subsidize tobacco production? C. Why do some countries grow faster than others? D. Should the government attempt to influence the interest rate to lower inflation?