Rent seeking in the form of lobbying for an increase in import tariffs by domestic producers
A) increases consumer surplus.
B) increases total welfare.
C) increases the deadweight loss.
D) None of the above.
C
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As the nominal interest rate increases, the opportunity cost of holding money ________ and the quantity of money demanded ________
A) decreases; decreases B) increases; increases C) decreases; increases D) increases; decreases E) increases; does not change because people need money
A natural monopoly regulated with a marginal cost pricing rule results in
A) an economic loss for the regulated firm. B) an economic profit for the regulated firm. C) a normal profit for the regulated firm. D) a deadweight loss.
Measuring the amount of unemployment in the economy is a straightforward task
a. True b. False Indicate whether the statement is true or false
If the legal minimum wage is set above the equilibrium wage rate
A. employment will tend to be lower than it otherwise would have been. B. employment will tend to be higher than it otherwise would have been. C. the level of employment will not be affected. D. there is no way to determine how the level of employment would be affected.