Imposing a quota on the import of a good is preferable to a tariff because a tariff creates a deadweight loss while a quota does not
a. True
b. False
Indicate whether the statement is true or false
False
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The transactions demand for money will shift to the
A. left when nominal GDP increases. B. right when the interest rate decreases. C. left when nominal GDP decreases. D. right when the interest rate increases.
What year did bank failures peak in the United States?
a. 1985 b. 1989 c. 2007 d. 2009
An increase in planned investment causes
A. output to increase. B. output to decrease by an amount equal to the decrease in investment. C. output to decrease, but by a larger amount than the decrease in investment. D. output to decrease, but by a smaller amount than the decrease in investment.
Suppose a country, whose production and consumption of cell phones is large relative to the world market, has just entered the global market. If the country is a net-importer of cell phones, we would expect:
A. an increase in both world price and quantity of cell phones. B. an increase in world price and decrease in world quantity of cell phones. C. a decrease in both world price and quantity of cell phones. D. a decrease in world price, and increase in world quantity of cell phones.