The Lucas Wedge is estimated to
A) total over $406,000 per person as a result of the slowdown in the growth rate of real GDP.
B) be positive in some years and negative in others.
C) be about 2 percent of real GDP per year.
D) be negative due to the severe recession in 2008-2009.
E) have reached about $13,000 per person in the last year.
A
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A commercial bank's main goal is to
A) provide loans to its customers. B) maximize the wealth of its stockholders. C) lend money to the Federal Reserve Banks. D) open checking accounts. E) help the government when it needs money.
The tables above show the marginal costs and benefits from production of paper. If the efficient level of output is achieved by imposing a tax on paper producers, the government collects tax revenue equal to
A) $64,000. B) $56,000. C) $72,000. D) $48,000.
Which of the following events is likely to reduce the demand for on-campus student housing?
a. a rise in rents for off-campus housing b. more students enrolling at the university c. it becomes less fashionable to live "on campus" d. a rise in dorm fees e. a rise in the incomes of students
The barter system is rarely used today because: