Figure 4-25
Refer to . The tax causes a reduction in consumer surplus that is represented by area
a.
A.
b.
B + C.
c.
D + E.
d.
F.
b
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What is the advantage of reporting the GDP on a quarterly basis?
What will be an ideal response?
The market demand curve for a perfectly competitive industry is
a. perfectly horizontal b. perfectly vertical c. upward sloping d. downward sloping e. nonexistent in perfect competition
Which of the following was a contributing factor to the rising default and foreclosure rates beginning in the latter half of 2006?
a. the increasing share of 30-year, fixed rate loans as a share of outstanding mortgages b. the rigid standards of rating agencies, such as Moody's and Standard and Poors, which limited the development of mortgage-backed securities c. the price-stability policies of the Federal Reserve during 1998-2008 d. the erosion of lending standards during the preceding decade
Suppose that roofers are not unionized. If roofers unionize, then the supply of labor in other sectors of the economy will
a. decrease, raising wages in industries that are not unionized. b. decrease, reducing wages in industries that are not unionized. c. increase, raising wages in industries that are not unionized. d. increase, reducing wages in industries that are not unionized.