Use the figure below to answer the following question.
What is the amount of consumer surplus after the government imposes the excise tax on the market?
A. $162
B. $486
C. $540
D. $144
Answer: B
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A tax imposed by the U.S. government on imported Chinese frozen shrimp would be an example of
A. a voluntary restriction. B. a quota. C. a tariff. D. a regulatory trade restriction.
Overproduction results in
A) external costs. B) external benefits. C) deadweight loss. D) super-efficiency. E) the marginal benefit of the last unit produced being larger than the marginal cost.
The Federal Trade Commission
a. was abolished by the Celler-Kefauver Act b. was established when the Antitrust Division of the Justice Department was eliminated c. largely deals with telephone and utility regulation d. is a weak and ineffective government agency e. investigates unfair and deceptive trade practices
Why would it be correct to say that, if we assume that people do not change their currency holdings and that banks do not hold any excess reserves, the equation ?D = 
?RR really could be stated as ?M1 = 
?RR ?
What will be an ideal response?