Which of the following did not contribute to the severity of the Great Depression?
a. a sharp reduction in the money supply during the early 1930s
b. a large tax increase (to balance the budget) in the early 1930s
c. substantial increases in the tariff rates on imported goods
d. a reduction in government expenditures and a substantial cut in personal income tax rates during 1932 and again in 1936
D
You might also like to view...
Refer to Figure 4-8. To legally drive a taxicab in New York City, you must have a medallion issued by the city government. Assume that only 13,200 medallions have been issued
Let's also assume this puts an absolute limit on the number of taxi rides that can be supplied in New York City on any day, because no one breaks the law by driving a taxi without a medallion. Assume as well that each taxi provides 6 trips per day. In that case, the quantity of taxi rides supplied is 79,200 (or 6 rides per taxi × 13,200 taxis). This is shown in the diagram with a vertical line at this quantity. Assume that there are no government controls on the prices that drivers can charge for rides. a. What would the equilibrium price and quantity be in this market if there was no medallion requirement? b. If there was no medallion requirement, indicate the area that represents consumer surplus. c. If there was no medallion requirement, indicate the area that represents producer surplus. d. If there was no medallion requirement, indicate the area that represents economic surplus. e. What are the price and quantity with the medallion requirement? f. With a medallion requirement in place, what area represents consumer surplus? g. With a medallion requirement in place, what area represents producer surplus? h. With a medallion requirement in place, what area represents the deadweight loss? i. Based on your answers to parts (c) and (g), are taxicab drivers better off with the medallion requirement for taxicabs than without? j. Are consumers better off with or without the medallion requirement for taxicabs?
Written and recorded works, ideas, formulas, and other creative intangible property that are owned by an individual or a group of individuals are examples of the economic concept of
A. intellectual property. B. personal effects. C. physical capital. D. public property.
If 1 U.S. dollar exchanges for 122.57 Japanese yen, how much would it cost in U.S. dollars and cents to purchase a Toyota Camry priced at 2 million yen?
What will be an ideal response?
Charlie is willing to pay $10 for a T-shirt that is priced at $9. If Charlie buys the T-shirt, then his consumer surplus is
A. $19. B. $0.90. C. $1. D. $90.