The loss in social surplus that occurs when the economy produces at an inefficient quantity is called
a. efficiency.
b. consumer surplus.
c. social surplus.
d. deadweight loss.
d. deadweight loss.
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To counteract the depreciation of the national currency against the U.S. dollar, the central bank of a country can intervene in the foreign exchange market. Which of the following imposes a restriction on this ability of the central banks to maintain a fixed exchange rate?
a. The central banks have a limited amount of international reserve. b. The central banks have a limited amount of domestic currency. c. Unrestricted sale of foreign currency will cause inflation in the domestic economy. d. The supply of dollars is perfectly elastic in the foreign exchange market. e. The central banks need to maintain a certain amount of its assets in the form of gold.
What is one role of the federal government's Department of Justice?
(A) To eliminate all barriers to entry. (B) To break up monopolies. (C) To encourage price fixing. (D) To provide businesses with loans for start-up costs.
?Exhibit 10A-2 Macro AD-AS Model
In Exhibit 10A-2, the long-run aggregate supply curve represents:
A. ?potential real GDP output for this economy. B. that the economy is experiencing zero inflation. C. ?that the economy is experiencing a recessionary gap. D. ?the level of real GDP where the unemployment rate is zero.
Which statement is true?
A. Rent, but not the interest rate is determined by supply and demand. B. The interest rate, but not rent, is determined by supply and demand. C. Both rent and the interest rate are determined by supply and demand. D. Neither rent nor the interest rate is determined by supply and demand.