If the real interest rate in the United States increases, foreign investors will ________ their demand for U.S. dollars because they desire to ________ more U.S. financial assets
A) increase; buy
B) increase; sell
C) decrease; buy
D) decrease; sell
A
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If a negative externality exists, __________ in order for the socially optimal output to be reached.
A. supply needs to increase B. supply needs to decrease C. demand needs to increase D. b and c E. none of the above
Which of the following is an earmarked tax?
a. personal income tax b. property tax c. Social Security tax d. excise tax e. custom duty
This graph demonstrates the domestic demand and supply for a good, as well as a tariff and the world price for that good.
According to the graph shown, if this economy were to open to free trade, the domestic quantity demanded would be:
A. 1500. B. 250. C. 500. D. 1150.
Exhibit 13-3 A monopolist
In Exhibit 13-3, if this industry is regulated and the regulatory commission sets price equal to marginal cost, then:
A. this firm would earn excess profit. B. price would equal ATC. C. the firm would suffer losses. D. revenue would just be sufficient to cover costs.