The general formula used for calculating the net national loss from a trade barrier as a percentage of gross domestic product (GDP) may fail to account for
A. the rent-seeking costs of local firms.
B. the production effect of the trade barrier.
C. the government revenue generated from the trade barrier.
D. the consumption effect of the trade barrier.
Answer: A
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As the best measure of the size of economic fluctuations associated with a business cycle, economists typically use
A) real GDP. B) the deviation of real GDP from potential GDP. C) potential GDP. D) the deviation of real GDP from nominal GDP.
Which of the following "quotations", according to chapter 23, best summarizes Keynes conclusions about the lessons of the depression for the nature of capitalism?
a. "It is in determining the volume, not the direction, of actual employment that the existing system has broken down.". b. "An economic system that forgets to find work for millions of men and women, cannot be trusted to perform any task in an intelligent fashion.". c. "The depression is essentially a problem of reliance on a private banking system for the provision of an inherently public good, money.". d. "The rules of sound finance, namely stable prices and balanced budgets, apply as much to the present crisis, as they do in more pleasant times.".
A monopoly's goal using price discrimination is to increase
A) total revenue. B) marginal revenue. C) total profit. D) the per unit profit.
The demand curve facing a monopolistic firm is
A. upward sloping. B. downward sloping. C. vertical. D. horizontal.