If the government overcorrected in a situation of external costs
a. More than the efficient amount of the good would end up being produced.
b. Less than the efficient amount of the good would end up being produced.
c. It would result in a welfare cost in that market
d. Both b and c are would result.
d
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A market structure in which a small number of firms compete is called ________
A) a monopoly B) a small-number market C) an oligopoly D) monopolistic competition
Consider a world with two income earners and an income tax. Individual A earns $25,000 and pays $1,000 in taxes. Individual B earns $100,000 and pays $4,000 in taxes. Which of the following best classifies the income tax system in this world?
a. proportional b. progressive c. regressive d. sumptuary
If Boring were able to move first in a sequential version of the game in Scenario 13.15, the equilibrium would be
A) an $80 price for Simple and a $70 price for Boring. B) an $80 price for Simple and a $25 price for Boring. C) a $35 price for Simple and a $70 price for Boring. D) a $35 price for Simple and a $25 price for Boring. E) a mixed strategy equilibrium.
What is the major cost of slowing down an ongoing inflation?
a. Output must rise above potential. b. The Fed must sell bonds at lower prices than those at which the bonds were purchased. c. Output must fall below potential. d. The Fed must purchase bonds from the public. e. The Fed must lend additional money to member banks at below-market interest rates.