Which of the following is not a DVC policy likely to increase DVC economic growth?
A. Encouraging direct foreign investment.
B. Opening economics to world trade.
C. Establishing independent central banks.
D. Encouraging emigration of highly skilled workers.
D. Encouraging emigration of highly skilled workers.
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The market demand function for wheat is Qd = 10 - 2P and the market supply function is Qs = 4P - 2, both measured in billions of bushels per year. Suppose the government wants to increase the price of wheat to $3/bushel and they impose a price floor to achieve their goal. What is the size of the consumer surplus?
A. $4 billion B. $8 billion C. $10 billion D. $6 billion
A heterodox model would not call for freezing wages and prices, but an orthodox one would
Indicate whether the statement is true or false
Neither the demand nor the supply of automobiles is perfectly elastic or inelastic. If the government imposes a $1,000 tax on automobiles, then the price of an automobile buyers pay
A) increases by $1,000. B) increases by less than $1,000. C) increases by more than $1,000. D) decreases by $1,000. E) does not change.
Businesses are less likely to make investment expenditures in order to increase their production or initiate new ventures under which of the following conditions?
A) if the economy appears to be weakening B) if interest rates increase C) if corporate income taxes increase D) all of the above