After the financial crisis of 2008, how did some Eurozone governments finance the bailout of their financial sectors?
A) by raising taxes
B) by issuing new government bonds, which were purchased by private banks, funded by ECB lending
C) by printing more domestic currency to accompany infusions of euros from the ECB
D) by selling foreign currency reserves and gold
Ans: B) by issuing new government bonds, which were purchased by private banks, funded by ECB lending
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Suppose a small island nation imports sugar for its population at the world price of $1,500 per ton. The domestic market for sugar is shown below.
If the government provides a subsidy of $500 per ton, then relative to before the subsidy, consumer surplus will ________ by ________ per day.
A. decrease; $500 B. decrease; $1,000 C. increase; $5,000 D. increase; $1,000
From 1978 to 1995, the rate of growth of output per worker in China appears to be
A) the result of capital accumulation. B) the result of technological progress. C) the result of trade barriers. D) equal to that of the United States. E) none of the above
Which of the following may be consistent with profit-maximizing behavior by a price-taking producer:
A. Output is set where price is equal to marginal cost. B. Output is set where marginal revenue is equal to marginal cost. C. No output is produced. D. (a) and (b) E. (a) and (c) F. (b) and (c) G. All of the above H. None of the above
According to Edward Denison, the United States has experienced
a. diseconomies of scale. b. economies of scale. c. constant returns to scale. d. None of the above