In today's world, the goal of financial stability means:
A. preventing large-scale financial catastrophes.
B. creating one mega regulatory agency.
C. no institution should fail.
D. competition should be eliminated.
Answer: A
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Refer to the scenario above. Which of the following would have happened if the government had decided to provide an export subsidy on these crops?
A) Domestic producers would have been worse off. B) Domestic consumers would have been worse off. C) The government's revenue would have increased. D) The volume of exports would have increased.
Using the data in the above table, if the private sector runs a surplus of $250 billion, imports will equal $1,000 billion if
A) government expenditure equals -$750 billion. B) investment equals -$1000 billion. C) government expenditure equals -$1000 billion. D) the government sector runs a deficit of $750 billion.
Refer to the graph shown. If this monopolist were forced to set price equal to marginal cost, in the long run it probably would produce:
A. 300 units of output. B. 0 units of output. C. 500 units of output. D. 900 units of output.
When the EPA requires that specific abatement equipment be installed in cars:
A. total vehicle emissions might increase. B. total vehicle emissions must decrease, and the most efficient technology is used. C. total emissions will remain the same, but the most efficient technology must be used. D. total emissions must decrease, but the technology may not be the most efficient.