If the Fed wished to eliminate an inflationary gap, which of the following would be an appropriate policy?
What will be an ideal response?
raise the federal funds rate
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This graph shows the marginal cost and marginal benefit associated with roadside litter clean up. Assume that the marginal benefit curve and marginal cost curve each have their usual slope. 
The socially optimal number of bags of litter removed from the roadside each day is:
A. 20. B. 15. C. 10. D. 30.
A(n) ________ is a trade policy by which a nation agrees to limit its exports of a good in order to avoid more restrictive trade policies
A) import ban B) tariff C) import quota D) voluntary export restraint
U.S. net exports include
A) sales of Hollywood movies to the rest of the world. B) the production of Ford Mustangs in China that are sold in China. C) Honda automobiles produced and sold in Japan. D) the sale of shares of Nike stock on the New York Stock Exchange. E) the sale of U.S. government securities to U.S. citizens.
According to the cost-benefit principle if a change generates $50,000 in gains and $45,000 in losses,
A) it is desirable. B) the gain is not large enough to justify the change. C) the desirability depends on who gains and who loses. D) it is a Pareto improvement.