If a nation imposes a tariff on an imported product, then the nation will experience a(n):
A. Decrease in total supply and an increase in the price of the product
B. Decrease in demand and a decrease in the price of the product
C. Decrease in supply of, and an increase in demand for, the product
D. Increase in supply of, and a decrease in demand for, the product
A. Decrease in total supply and an increase in the price of the product
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All of the following are examples of macroeconomic problems EXCEPT
A) inflationary pressures caused by an increase in the cost of petroleum. B) unemployment caused by a fall off in the level of residential construction. C) a decline in the rate of overall economic growth. D) consumers deciding to buy more fish and less beef because of concerns about a healthier diet.
If a bond pays 11.5 percent interest a year and a bank deposit pays 3.5 percent, the opportunity cost of holding the deposit is:
a. 11.5 percent. b. 15 percent. c. 8 percent. d. 3.5 percent. e. 13.5 percent.
According to the theory of rational expectations, the government can influence output
a. with appropriate fiscal and monetary policy. b. in the short run, but not in the long run. c. without affecting the price level. d. only by making unexpected changes that impact aggregate demand.
The prices of the products in the World War II POW camps, measured in terms of cigarettes, reflected the products':
A. costs of production. B. retail prices. C. practicality. D. scarcity.