When prices rise, the interest rate:
A. is usually not affected.
B. tends to rise.
C. will rise if the wealth effect outweighs the price effect.
D. tends to fall.
Answer: B
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Which of the following is the best synonym for "marginal" in economics?
A. basic B. scarce C. additional D. minor
Which of the following statements about tariffs is true?
A. The revenue gained from tariffs equals the total cost that tariffs impose on consumers. B. The costs of tariffs are proportionately higher for high-income groups than for low-income groups. C. U.S. consumers lose more from tariffs than U.S. producers gain. D. U.S. producers gain more from tariffs than U.S. consumers lose.
Refer to Figure 15-13. From the monopoly graph above, identify the area representing the deadweight loss
Would the deadweight loss be larger if the demand curve was more elastic or less elastic? What will be an ideal response?
During the Civil War, the government faced two classic problems: How to acquire the financial resources it needed to carry on the affairs of government and, at the same time, stabilize the monetary system. It solved this dual problem by creating
a. Continental currency which soon rapidly depreciated b. the Second Bank of the United States c. a national banking system by enacting the National Bank Act d. the Exchequer of the Currency department to abolish the national currency e. speculative land notes that could easily be converted to gold