Suppose a new government policy generates $6,000 of benefits for local businesses and $4,000 of costs. We can best describe the policy as
A. potentially efficient.
B. equitable.
C. Pareto efficient.
D. inefficient.
Answer: A
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An increase in the nominal interest rate, other things constant, will: a. shift the money demand curve to the right
b. shift the money demand curve to the left. c. increase the quantity of money people choose to hold. d. decrease the quantity of money people choose to hold. e. have no impact on the money demand curve.
Which of the following is true of America's millionaires?
a. Most millionaires inherited at least half of their wealth. b. Millionaires are far more likely than others to be self-employed entrepreneurs. c. It is virtually impossible to achieve this status by saving and investing over a lengthy period of time. d. Only about 20 percent of the millionaires in the United States have college degrees.
When a U.S. oil company purchases oil from Saudi Arabia and the Saudi Arabian firm uses the proceeds from the sale to buy transportation services from the U.S., U.S. net exports ________ and the capital inflow to the United States ________.
A. are negative; is negative B. are unchanged; is unchanged C. are negative; is positive D. are positive; is negative
For which market structure do economists have the least precise model of price determination?
A) perfect competition in the short run B) perfect competition in the long run C) oligopoly D) monopoly