Suppose a tax is imposed on bananas. In which of the following cases will the tax cause the equilibrium quantity of bananas to shrink by the largest amount?
a. The response of buyers to a change in the price of bananas is strong, and the response of sellers to a change in the price of bananas is weak.
b. The response of sellers to a change in the price of bananas is strong, and the response of buyers to a change in the price of bananas is weak.
c. The response of buyers and sellers to a change in the price of bananas is strong.
d. The response of buyers and sellers to a change in the price of bananas is weak.
c
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Which of the following will create the largest increase in the money supply?
A. the Federal Reserve sells bonds and the banks choose to hold more excess reserves B. the Federal Reserve buys bonds and the banks choose to hold less excess reserves C. the Federal Reserve buys bonds and the banks choose to hold more excess reserves D. the Federal Reserve sells bonds and the banks choose to hold less excess reserves
Refer to Table 18-2. The table above lists three policy alternatives that the U.S. Senate will vote on, along with the ranking of these alternates
The Senate must decide which of these alternatives should receive an additional $1 billion of funding, and there is enough money in the federal budget for only one of these alternatives. If a series of votes is taken in which each pair of alternatives is considered (homeland security and education; homeland security and medical research; education and medical research) which of the following will result from these votes? A) The results will illustrate the voting paradox. B) When the vote is between homeland security and education, the Senators will vote for education to receive funding. C) The results from the voting will illustrate the median voter theorem. D) The Senators' votes will demonstrate transitivity.
Table 25.2Pool SweeperOutput (Revenue)Market Share (%)North Star$20,000 Hurricane$16,000 Blue Lagoon$2,000 Clean Sweep$2,000 Refer to Table 25.2. Assume there are only four firms in the pool sweeper industry. What is the Herfindahl-Hirschman Index for this industry?
A. 4,125. B. 50. C. 4,150. D. 2,500.
If butter and margarine are substitutes, then an increase in the price of butter will reduce the demand for margarine.
Answer the following statement true (T) or false (F)