Which of the following conditions is least important for immiserizing growth to arise in a country?
A. The country exports a broad range of goods but imports all the other goods consumed in the economy.
B. The foreign demand for the country's exports is price inelastic so an expansion in the country's export supply leads to a large drop in the international price of the export product.
C. The country's growth is strongly biased toward expanding the country's supply of exports, and the increase in exports is large enough to have a noticeable impact on world prices.
D. Before the growth, the country is heavily engaged in trade so the welfare loss from the decline in the terms of trade is great enough to offset the gains from being able to produce more.
Answer: A
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When a tax is present in a market, the price paid by consumers:
A. equals that received by suppliers, but it is higher than the market price in the absence of taxes. B. is greater than that received by suppliers. C. is less than that received by suppliers. D. equals that received by suppliers, but it is lower than the market price in the absence of taxes.
The amount of money that a bank must keep on hand per dollar of deposits is called
A) the discount rate. B) the quick ratio. C) the multiplier. D) the reserve requirement.
Figure 10.5 Federal Outlays, Receipts, and Surplus/Deficit, as a Percent of GDP, 1980-2011
What will be an ideal response?
In the long run, the price level is determined by aggregate supply.
a. true b. false