Last year, total income increased $1,000 and consumption increased $800 . An increase in government spending equal to $10 would cause output to increase by $_____ because the multiplier is ______
Fill in the blank(s) with correct word
50, 5
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Which of the following statements is true?
A) Although consumers reap some consumer surplus under a single-price monopoly, society is better off with optimal two-part tariff pricing. B) Of the three pricing schedules, single-price monopoly, an optimal two-part tariff, and perfect price discrimination, profit is highest under single-price monopoly pricing. C) Consumer surplus under perfect price discrimination is greater than under single-price monopoly pricing. D) Consumer surplus under an optimal two-part tariff is greater than that under single-price monopoly pricing.
When the federal government installs a price support program that requires the government to purchase all of a good not bought in the private economy at the support price, the impact on total welfare is the
A) change in consumer surplus. B) change in consumer surplus + the change in producer surplus + the cost to government. C) change in consumer surplus + the change in producer surplus - the cost to government. D) change in consumer surplus + the change in producer surplus.
If both market demand and supply increase simultaneously, then equilibrium quantity will (be) ____ and equilibrium price will (be) ____
a. indeterminate; decrease b. increase; increase c. increase; indeterminate d. decrease; decrease
The Fed sometimes acts as a lender of last resort. This means that
a. individuals can borrow from the Fed when the President declares a national disaster b. individuals can try to borrow money from the Fed if they are unable to borrow from a bank c. banks can always go to the Fed for reserves in order to purchase more government bonds d. banks can always go to the Fed for reserves to meet their obligations to depositors e. business firms can try to borrow money from the Fed they are unable to borrow from a bank