Which of the following contributed to the severity of the Great Depression?
a. the substantial budget surpluses run during the Hoover administration
b. a sharp increase in tariff rates in 1930
c. the large reduction in tax rates under the Hoover administration
d. a highly expansionary monetary policy followed by the Fed in the late 1920s and early 1930s
B
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A market has four individuals, each considering buying a grill for his backyard. Assume that grills come in only one size and model. Abe considers himself a grill-master, and finds a grill a necessity, so he is willing to pay $400 for a grill. Butch is a meat-lover, honing his grilling skills, and is willing to pay $350 for a grill. Collin just met the girl of his dreams, and she loves a good grilled steak, so in his effort to impress her he is willing to pay $320 for a grill. Daniel loves grilled shrimp and thinks it might be cheaper in the long run if he buys a grill instead of eating out every time he wants grilled shrimp, so he is willing to pay $200 for a grill.
If the market price of grills increases from $300 to $325, given the scenario described: A. Collin would drop out of the market. B. Collin's surplus would decrease the most. C. Collin is the only consumer who would be affected in terms of surplus. D. Daniel’s surplus would decrease.
If the marginal product of labor is positive and increasing, then the total product of labor curve is
a. constant b. upward sloping and becoming steeper c. downward sloping and becoming flatter d. lies above the total cost curve e. lies below the total cost curve
When looking at economic growth in a country, the distribution of output and income
A. is skewed toward the lowest quintile of the population. B. generally follows predictable patterns. C. is not taken into consideration. D. is shared equally.
The figure above shows the U.S. demand and U.S. supply curves for cherries. At a world price of $2 per pound once international trade occurs, the total exports of cherries from the United States to other nations equals
A) 200,000 pounds. B) 400,000 pounds. C) 600,000 pounds. D) 800,000 pounds. E) 0 pounds.