Henry Trudeau deposits $2,000 in currency in the First Street Bank. Later that same day Jane Harris negotiates a loan for $5,400 at the same bank. After these transactions, the supply of money has:
A. increased by $7,400.
B. decreased by $3,300.
C. increased by $3,300.
D. increased by $5,400.
Answer: D
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A study by the Congressional Budget Office (CBO) regarding the corporate income tax included the following statement: "A corporation may write its check to the Internal Revenue Service for payment of the corporate income tax, but the money must come
from somewhere..." The comments that followed this statement argued that A) corporations pass on some of the burden of the tax to investors in the company, to workers, and to consumers. B) it is necessary to retain the tax because it is based on the ability-to-pay principle. C) the corporate income tax is a reliable source of revenue because corporations cannot avoid paying the tax. D) the tax is more progressive than the individual income tax.
What is one reason activists might lobby the government for regulation limiting the production of a product to less than would normally be produced in a perfectly competitive market?
A) They value consumer surplus more than producer surplus. B) They value producer surplus more than consumer surplus. C) They seek to avoid future regulation. D) They seek to minimize total surplus.
You own an ice cream store and are concerned that an employee may be giving generous scoops to friends and relatives and smaller scoops to some other customers. This may be reducing sales. In this example, you are the
a. principal and the your employee is the agent. b. agent and the your employee is the principal. c. signaler and the your employee is the screener. d. screener and the owner of the coffee ship is the signaler.
If country A has a larger trade triangle than country B, reciprocal demand will lead to an increase in the relative price of A's imports
Indicate whether the statement is true or false