Which of the following is a common reaction to a decrease in the interest rate?
a. An increase in oil prices.
b. A decrease in stock market prices.
c. An increase in spending on new homes.
d. An increase in military spending.
e. An increase in federal highway spending.
C
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What area in the above figure is the producer surplus at the efficient quantity?
A) A B) A + B + C C) F D) D + E + F
If people assume that future rates of inflation will ________, they are said to have adaptive expectations
A) not be related to inflation rates of the past B) follow the pattern of inflation rates in the past C) be higher than inflation rates of the past D) be lower than inflation rates of the past
Nash equilibrium is:
a. where one player maximizes his payoff and the other doesn't b. when each player's strategy is the best response to the other player's strategy c. where the outcome is always efficient d. difficult to determine
The net loss in welfare from a quota is proportionately larger than for a tariff because: a. it does not result in government revenue
b. the loss in consumer surplus is greater than the gain to producers and the government. c. it prevents nations from fully realizing their competitive advantage. d. it brings about higher prices and revenues to domestic producers.