Domestic producers might oppose free trade agreements because
A. there could be a decrease in producer surplus.
B. there could be an increase in consumer surplus.
C. there could be an increase in producer surplus.
D. there could be a decrease in consumer surplus.
Answer: A
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A relative price is
A) the number of dollars that must be given up in exchange for the good. B) also called the money price. C) not an opportunity cost. D) the ratio of one price to another price.
Transfer payments are not part of government expenditure on goods and services because transfer payments
A) are not predictable given the nature of their appropriation and allocation. B) do not represent the purchase of a final good or service. C) are not always spent on goods produced in the U.S. D) The premise of the question is incorrect because transfer payments are part of government purchases of goods and services.
Many ecologists argue that several species of whales are close to extinction. If this is TRUE, the reason is
A. whale-killing technology is too productive. B. the marginal benefit of hunting and killing a whale is greater than zero. C. whales are a type of common property. D. inadequate enforcement of international laws.
When do Federal Reserve notes become part of the money supply (M1)? When they are
A) deposited in the vaults of commercial banks. B) printed by the Bureau of Engraving. C) received by the Federal Reserve Banks. D) spent by the public on newly-produced goods. E) withdrawn from commercial banks by the public.