This graph demonstrates the domestic demand and supply for a good, as well as a quota and the world price for that good.
According to the graph shown, if the government decides to restrict trade, a deadweight loss is created equal to area(s):
A. FGH.
B. DFGH.
C. G.
D. F and H.
Answer: D
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Higher income countries are more likely to have _____________ returns to their investments and must continually invent new technologies, which allows lower-income economies to have a chance for convergent growth.
a. marginal b. increasing c. diminishing d. stagnant
Suppose $100 is deposited in a bank account paying 5% compounded annually. If the interest earned is X after 5 years, then the interest earned will be 2X after 10 years
Indicate whether the statement is true or false
In the simultaneous move labor negotiation game:
a. The payoffs are always higher if you accommodate b. The payoffs are always higher if you bargain hard c. The payoffs from accommodating are only higher if your opponent bargains hard d. The payoffs from accommodating are only higher if your opponent accommodates
Economist A says all of the following: The economy needs expansionary fiscal policy to remove it from a recessionary gap. Government should either raise its _____________ or cut ___________________. I believe the government spending multiplier is ____________ than the tax multiplier, so I favor _____________________
A) spending; taxes; larger; cutting taxes B) taxes; spending; larger; raising; spending C) spending; taxes; larger; raising; spending D) b or c E) a or c