As a result of a tariff on an imported good,
a. domestic producers are better off because they sell more goods at the same price.
b. domestic producers are better off because they sell more goods at a higher price.
c. domestic producers are better off because they sell the same quantity of goods at a higher price.
d. domestic consumers are better off because there are more domestically produced goods available.
e. domestic consumers are neither better off nor worse off because imports do not change.
B
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Which of the characteristics of perfect competition assures that economic profit will be zero in the long run?
a. Each firm is small relative to the market. b. Each firm has access to perfect information. c. Goods produced in the market are homogeneous. d. Each firm is a price taker. e. There is easy entry and exit in the market.
An essential piece of the liquidity preference theory is the demand for money
a. True b. False Indicate whether the statement is true or false
One way to attain a faster rate of economic growth would be to shift some resources from the production of _________ goods to the production of __________ goods.
Fill in the blank(s) with the appropriate word(s).
Describe the Keynesian transmission mechanism for a decrease in the money supply. Assuming that no liquidity trap exists, that investment is interest-sensitive, and that the economy is in the horizontal portion of the AS curve, what happens to Real GDP and the price level? How can you tell if this is a direct transmission mechanism or an indirect one?