Without a belief that the market has failed, which of the following will result in deadweight loss?
A. A price below or above equilibrium
B. A price above equilibrium
C. A price at equilibrium
D. A price below equilibrium
Answer: A
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Which of the following will be recorded as a debit entry in the balance of trade in merchandise account?
a. A U.S. car manufacturer selling a car to a resident of India. b. A pub owner in Liverpool importing vodka from a U.S. manufacturer. c. A U.S. textile manufacturer buying rawmaterial from farmers in Indonesia. d. A Chinese car manufacturer importing car engines and other spare parts from a U.S. manufacturer. e. A fashion designer from Michigan exporting readymade garments to a dealer in Copenhagen.
Giffen goods violate the law of demand
a. True b. False Indicate whether the statement is true or false
Refer to the information. If government spends $80 billion at each level of GDP, and imposes a lump-sum tax of $100:
The following information is for a closed economy:
A. equilibrium GDP will now be $350.
B. equilibrium GDP will now be $400.
C. equilibrium GDP will now be $300.
D. the equilibrium GDP cannot be determined.
An increase in the quantity of money supplied shifts the money supply curve to the ________ and the LM curve to the ________, everything else held constant
A) right; left B) right; right C) left; left D) left; right