High gasoline prices give people all of the following incentives EXCEPT
A) to drive less.
B) to car pool.
C) to buy a hybrid car.
D) to take vacations that require driving more miles.
Answer: D
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Refer to Figure 13-11. What is the allocatively efficient output for the firm represented in the diagram?
A) Q1 units B) Q2 units C) Q3 units D) Q4 units
In the monetary small open-economy model with a fixed exchange rate, a devaluation of the domestic currency in the absence of any other shocks
A) increases the current account surplus and has no effect on the domestic money supply. B) decreases the current account surplus and has no effect on the domestic money supply. C) increases the domestic money supply and has no effect on the current account surplus. D) decreases the domestic money supply and has no effect on the current account surplus.
Special-interest groups:
a. are more likely to be well-informed about "their" issue than the general public b. may consist of a congressional district c. may support policies that are harmful to the general public d. all of the above
Cost-push inflation corresponds to ________ output and demand-pull inflation corresponds to ________ output.
A. lower; higher B. higher; higher C. higher; lower D. lower; lower