Suppose the world was on the gold standard. If Japan ran persistent trade surpluses,
A. Japan's money supply would increase.
B. Japan would experience inflation.
C. Japan's exports would fall.
D. All of the choices are true.
D. All of the choices are true.
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Which of the following is NOT true about the $3 per pizza tax illustrated in the above figure?
A) It decreases consumer surplus by $90 thousand. B) It decreases producer surplus by $45 thousand. C) It creates a deadweight loss of $135 thousand. D) None of the above because they are all true.
The use of checks in transactions
A) entails lower information costs than the use of currency. B) entails fewer steps than settling transactions with currency. C) avoids the cost of transporting currency back and forth. D) entails lower information and fewer steps than settling transactions with currency.
Government price setting _____
a. prevents firms from lowering their prices b. creates barriers to entry c. helps enforce collusion among industry members d. all of the above
What are the fundamentals of Coasian reasoning?