Refer to Figure 4-9. As a result of the tax, is there a loss in producer surplus?
A) Yes, because producers are not selling as many units now.
B) No, because producers are able to raise the price to cover their tax burden.
C) No, because the market reaches a new equilibrium
D) No, because the consumer pays the tax.
A
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Which of the following would be represented as a debit in the U.S. balance of payments?
a. U.S. purchase of cars from Italy b. U.S. sale of beef to Israel c. U.S. government receives transfers from foreign governments to support U.S. expenses incurred in Europe d. U.S. residents receive gifts of money from friends abroad e. income received by U.S. resident from overseas investment
If an individual requires a bag full of cash to buy a pound of cake, then the currency is: a. not recognized as a medium of exchange. b. not performing well as a store of value. c. not performing as a unit of account
d. performing well as a commodity.
When a resource can earn as much in its best alternative use as in its present use, then the supply curve of the resource is:
a. upward sloping. b. backward bending. c. downward sloping. d. horizontal to the x-axis.
One lesson of the Great Depression was that potential GDP could _____
Fill in the blank(s) with the appropriate word(s).