In Figure 3-7 above, the multiplier for a change in autonomous taxes is
A) 5.
B) 4.
C) 2.50.
D) 1.
B
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A model in which workers won't be concerned about the possibility of being fired if they don't work hard, because their wage is so low, is called
A) a cost—benefit model. B) a job—stress model. C) a gift—exchange model. D) a shirking model.
Considering a given increase in price due to a tax, the less price elastic the demand curve is, the:
A. larger the drop in equilibrium quantity. B. smaller the amount of deadweight loss created. C. larger the amount of deadweight loss created. D. more surplus that is transferred to consumers.
Suppose the price of wine in Berylia is higher than the world price of wine. If the market for wine is opened to international trade, how will the total surplus in the market get affected?
Prior to 2008, the primary tool used by the Fed to control the money supply was
a. the manipulation of the required reserve ratio banks must hold against their checking deposits. b. the extension of loans to financial institutions. c. the buying and selling of stocks and corporate bonds. d. the buying and selling of U.S. Treasury securities.