Which of the following statements is false?
A) Consumers receive more consumers' surplus when tariffs do not exist.
B) Producers receive more producers' surplus when tariffs do exist.
C) A tariff results in a net loss to society.
D) With a tariff, the gains to the winners are less than the losses to the losers.
E) none of the above
E
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The Federal Reserve has just purchased bonds in the market, carrying out open market operations. In the short run in the Keynesian model, this would cause the foreign real interest rate to ________ and foreign output to ________
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
Suppose a large tree on Adam's property blocks Eve's view of the ocean. Adam accepts Eve's offer of $15,000 to cut down the tree. This is an example of
A) internalizing externalities via voluntary agreements. B) a result of logrolling. C) a consequence of a positive externality. D) a consequence of private costs exceeding social costs.
Bankers supported the Federal Reserve Board's Regulation Q because:
a. it allowed them to charge lower interest rates on loans. b. it protected them from money market volatilities. c. it increased the demand for loanable funds in the market. d. it allowed them to borrow at a low rate of interest and lend out at a high rate of interest.
Highly concentrated markets have a large number of price-taking firms.
Answer the following statement true (T) or false (F)