If the United States government wants to eliminate an unfavorable balance of trade, it could
a. reduce tariffs
b. encourage imports
c. reduce quotas on imports
d. depreciate the dollar
e. increase taxes on exported goods
D
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Which of the following is an example of specialization?
A) The output of workers in a chocolate factory doubled when a new manager was appointed. B) The cost of production of a light bulb making factory decreased as its capacity increased. C) Instead of a worker making an entire shoe, the total productivity increased when different workers were allotted different jobs in the production process. D) Import of better technology and machinery from developed countries greatly increased the number of laser printers that a company was manufacturing.
In the money market, an increase in money demand will:
A) result in a rightward shift in the money demand curve increasing interest rates. B) result in a rightward shift in the money demand curve decreasing interest rates. C) result in a leftward shift in the money demand curve increasing interest rates. D) result in a leftward shift in the money demand curve decreasing interest rates.
Consider a single-price monopolist that is in equilibrium at output level Q* and price P*. If the government imposes a new tax on the firm of $25 per unit of output, then
a. output and price will remain at Q and P b. output will fall and price will rise by $25 c. output will fall and price will fall by less than $25 d. output will rise and price will fall by $25 e. output will fall and the price will rise by less than $25
When the unanticipated inflation rate is zero
A. creditors gain at the expense of debtors. B. both creditors and debtors lose at the expense of the government. C. debtors gain at the expense of creditors. D. neither creditors not debtors gain or lose.