Refer to Sales Tax. Prior to the sales tax, which of the following was false?
a. Consumer surplus was A+B+C+D+E.
b. Producer surplus was F+G+H+I+J.
c. Government tax revenue was zero.
d. Dead-weight loss was zero.
b. Producer surplus was F+G+H+I+J.
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The Open Market Trading Desk is
A) another name for the Federal Open Market Committee. B) an organization of private traders in government securities. C) the area on the floor of the New York Stock Exchange set aside for bond trading. D) a group of private securities traders that the Fed has selected to participate in open market operations.
An efficiency-wage premium serves the same function as a bond because, just as with a bond, the premium represents
A) the amount the employee loses if caught shirking. B) the expected value of the amount the employee loses if he shirks. C) the cost of monitoring the employee. D) the gain to the employee if he shirks.
An example of opportunity cost:
a. is the Chinese food that you gave up when you chose to eat Italian food. b. is the tuition that you pay to attend college. c. for a professor of economics is the pleasure that he or she derives from teaching economics. d. is sweets given up by a person who would never eat them even if he or she could. e. is the amount spent on buying movie tickets.
Which of the following is an example of representative money?
(A) An IOU note (B) Gold earrings (C) A fur coat (D) Diamonds